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With confidence on the rise, automakers predict billionaire investment in the country

Stronger Brazil

Investments help in the recovery of the economy and in the resumption of the labor market. Five major automakers announced investments

Given the good performance of the automotive sector in exports and the improvement of the economy, companies are starting to take projects from the drawer. Just this year, five major automakers announced more than $ 10 billion in investments to expand, build and improve production lines. The size of the bet of the sector in Brazil, according to experts, shows how much these companies believe in the future of the Country.

Projections from economists of financial institutions explain the reason for this bet in Brazil . Expectations show the country back on track for growth. This week, analysts have revised upward projection of growth of the Brazilian economy for this and next year. Analysts now expect the Gross Domestic Product (GDP) to advance 0.70% in 2017, compared to an earlier estimate of 0.68%.

For 2018, the projections point to a growth of 2.38% of the Brazilian economy. Previously, this estimate was at 2.30%. The figures are in the Focus Bulletin, a weekly document prepared by the Central Bank with estimates of about 100 analysts.

With this scenario on the radar, Toyota announced recently that it will make a contribution of R $ 1 billion in the unit of Sorocaba (SP) for the manufacture of Yaris. Production will begin in the second half of 2018 and is expected to generate 500 new jobs, according to the company.

More investments

In March of this year, the Japanese automaker had already announced R $ 600 million for the production of a new generation of Corolla engines, which will no longer be imported to be produced at the factory in Porto Feliz (SP), increasing the production capacity of 108 thousand to 174 thousand engines per year. The expectation is that this expansion will generate 250 new direct jobs.

In addition to Toyota, Volvo, Renault, General Motors (GM) and Volkswagen also announced that they will invest. GM, for example, will share the financial contribution between  the Gravataí Industrial Complex (RS) and the São Caetano do Sul (SP) and Joinville (SC) units.

Pole

"We continue to have enormous relevance for Brazilian exports, with a very strong growth rate, of 62% in the accumulated of 2017," said the president and chief executive of Volkswagen do Brasil and South America, David Powels. Volkswagen will invest R $ 2.6 billion in the Anchieta (SP) plant to produce the Novo Polo. 

"We have intensified our contacts with the markets of the regions of South America and Latin America to maintain the good performance, which drives the results of the entire sector," he explained.