Section 5. Latin America, Africa, and Middle East
Item 2. Production Site Expansion
Regaining ground with the second-generation Corolla - Brazil
In Brazil, TDB began producing the Corolla at its Indaiatuba Plant, its second plant, in 1998. However, beginning in 2000, TDB's production stagnated at a low level following a sharp drop in exports to Argentina, which was facing a financial crisis.
To resolve this situation, TMC made a decisive move to redesign the Corolla in 2002, shifting from complete-knockdown production (kit assembly) to full-scale local production. During this step, Toyota built a new stamping plant, expanded parts supply from the Sao Bernardo Plant-which was producing the Bandeirante (based on the Land Cruiser)-and significantly increased the local procurement rate. The Brazilian-made second-generation Corolla was well received in Latin American countries, including the economically-recovering Argentina. To act as the base for exporting passenger cars to Latin American countries, TDB increased its annual production capacity from 20,000 to 50,000 vehicles by 2002.
Meanwhile, the Sao Bernardo Plant, which had been in operation since 1962, ended production activities in 2001 because it became difficult to get the vehicles it was producing to meet emissions regulations. As a result, the plant was converted to make parts for the Brazilian-made Corolla and Argentinean-made Hilux.
In 2004, TDB began producing the Corolla Fielder, a model derived from the Corolla, and in 2007 the Corolla Flex, a vehicle capable of running on fuels that consist of any percentage of ethanol mixed with gasoline or ethanol alone. Then, in 2008, the Corolla was completely redesigned to create the third generation of the model for Brazil.