Toyota Halts Brazil Production After Storm Damage: Report

Toyota Motor Corporation (NYSE: TM) shares are trading relatively flat on Thursday.

The Japanese carmaker reportedly faced an unexpected setback this week in Brazil after powerful winds and torrential rain severely damaged one of its key engine plants, forcing the automaker to stop production at two sites.

Reuters reports that the company’s operations were halted at its Porto Feliz facility in São Paulo state, where engines are built, and at its Sorocaba plant, which produces vehicles including the Yaris, Corollas, and Corolla Cross.

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The company has yet to provide a timeline for restarting production. According to Toyota, the Porto Feliz plant sustained extensive structural damage when a violent storm struck the region on Tuesday.

While no fatalities were reported, local labor representatives said roughly 30 employees sustained minor injuries.

Reuters cited images from local outlets that showed collapsed sections of roofing and water flooding factory floors.

The destruction also disrupted the company’s rollout of the Yaris Cross, a model intended for the Brazilian market.

That launch, initially set for Oct. 16, has been pushed back indefinitely as Toyota focuses on recovery efforts and assessing long-term damage at the affected sites, Reuters adds.

According to Benzinga Pro, TM stock has gained over 7% in the past year. Investors can gain exposure to the stock via Precidian ETFs Trust Toyota Motor Corporation ADRhedged (NYSE: TMH).

TM Price Action: Toyota Motor shares are trading lower by 0.33% to $197.44 at last check on Thursday.

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