Why this is important to Wisconsin businesses: The investments will result in more opportunities for auto industry suppliers and technologies.
Automakers are building and upgrading their manufacturing facilities in Brazil at a record level as the country seeks to become a hub for sustainability innovation in the industry.
As of mid-April 2024, vehicle manufacturers have announced $22 billion in investments so far this year, according to the Brazilian Association of Vehicle Manufacturers. Some of the projects will run five years or longer.
The plans include:
• Stellantis: $6 billion through 2030
• Volkswagen: $3.2 billion through 2028
• Toyota: $2.2 billion through 2030
• General Motors: $1.4 billion through 2028
• Renault: $1 billion through 2027
• Nissan: $560 million through 2025
Policy changes initiated by Brazil’s government have spurred the activity, according to the U.S. International Trade Administration (ITA).
The National Green Mobility and Innovation Program, known as Mover, began in 2024. It aims to reduce carbon emissions from vehicles. The program offers significant tax incentives to companies that invest in decarbonization efforts in research, development, and production.
Stellantis, based in the Netherlands, says its investment is the largest of any automaker in the history of that industry in South America. The funds will support the development of new bio-hybrid fuel technologies as well as the launch of more than 40 new products.
The government program and the subsequent investments will have a huge impact on Brazil’s auto industry, including vehicle parts and manufacturing, the ITA says.
There will also be expanded opportunities for companies in the U.S., including Wisconsin, to supply technologies, equipment, and parts that could be incorporated into the new operations and products.
