"Have you ever considered why we are manufacturing in South America?" This was the question Akio Toyoda, then-President of Toyota, posed to the Toyota Latin America Chief Executive Officer, who had come to discuss the plant's closure.
A plant where visions transcend corporate boundaries
The site of the former plant is being taken over by “Tubos Ipiranga,” a Sao Bernardo-based company specializing in industrial steel pipes for oil and gas.
In October 2022, a portion of the site was handed over to the company, and their employees began working there. Daniel Plassa, the founder and chairman, had long desired to consolidate the scattered plants and offices across and outside Sao Paulo in his hometown of Sao Bernardo.
Alexandre Plassa, the company’s president and Daniel’s son, shares, “Our company was founded in Sao Bernardo, so this is our origin. We’ve witnessed Toyota’s journey up close since their plant was established here. We respect Toyota for its corporate culture that values its employees and for producing high-quality products.”
“We’ve always valued people in our business. We believe that motivated individuals are essential for realizing our goals. We aim to share and shape this culture with Toyota.”
By the end of 2024, about 70% of their 1,000 employees are expected to be working at the site of the former Sao Bernardo Plant.
A finale in the spirit of Toyota
This decision, made with the future of the company and the well-being of stakeholders in mind, inevitably brought tough choices for those involved in closing the plant.
Chairman Akio Toyoda, who has overseen the closure of plants both domestically and globally since becoming president, describes each decision as unbearable beyond words.
At the beginning of 2023, reflecting on past decisions, he addressed the employees about the unwavering principles Toyota must adhere to.
"Conducting business globally means living alongside stakeholders worldwide and the people of the communities where Toyota operates. I believe Toyota's true value and resolve are tested when it comes time to end a business."
This philosophy remained steadfast in the recent decision. Inoue recounted an episode when he consulted with then-President Toyoda about this closure.
Inoue
“I was afraid I’d be scolded for what I was thinking. But when I was hesitant to speak, President Akio Toyoda said, ‘Why are you so apprehensive?’ I responded, ‘Closing Toyota’s first (overseas) plant is a significant matter, and I am afraid to do it.”
President Toyoda then asked, “Before worrying about that, have you considered why you’re manufacturing in South America?” He continued, “It’s to contribute to people’s lives, create employment, and bring happiness. To survive, we must do what’s necessary. What are you worried about? Have the courage to move forward.” He really encouraged us to take bold steps.
One and a half years after announcing the closure, in November, the Sao Bernardo Plant concluded its over 60-year history by moving the last forging equipment.
The word “moving” belies the difficulty of the feat. The closing and receiving plants were maintaining full production at the time, and creating the original quality immediately was extremely difficult.
As the plant reached its end, there was a touching moment when employees meticulously polished the equipment in consideration of the receiving facility. Some employees also visited the new site, offering heartfelt support for the setup.
“The pride in their work and gratitude towards those receiving their equipment—this is where I see the Toyota Way,” says Inoue.
This dignified conclusion displayed by the employees of the Sao Bernardo Plant epitomizes the Toyota spirit. Each individual is carrying the plant’s legacy forward into the future.
