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Toyota halts production after heavy rains hit factory in Brazil

Workers will vote on a temporary suspension of their contract
Bruno Bocchini
Published on 26/09/2025 - 09:40
Agência Brasil - São Paulo
Imagem feita por drone da fábrica da Toyota em Porto Feliz, São Paulo, Brasil
24/09/2025
REUTERS/Jorge Silva
© 24/09/2025 REUTERS/Jorge Silva

Toyota suspended production at its plants in Brazil after a severe storm last Monday (Sep. 22) harmed its Porto Feliz unit in São Paulo state, where the brand’s engines are produced.

Because of the damage at the Porto Feliz plant, the Indaiatuba and Sorocaba units - also in São Paulo state and supplied by Porto Feliz - have halted operations.

“The restart of the engine factory is expected to take months. Given this situation, the company is seeking alternative engine supply options from Toyota units in other countries, with the goal of resuming vehicle production at the Sorocaba and Indaiatuba plants, the automaker said in a statement.”

With the suspension, the company stated that it is in talks with workers. The proposal involves a temporary suspension of employment contracts (layoffs). In these cases, workers will not be able to provide services and will not receive their full salaries, but the employment relationship will be maintained.

Assembly

Workers at the Sorocaba plant will decide in a virtual assembly starting this Friday (26) whether to accept the layoff proposal put forward by the company. Employees can deliberate on the matter until September 28.

In a statement, the regional metalworkers’ union said the company has committed to maintaining all jobs in Porto Feliz, including guaranteeing previously negotiated benefits.