Volkswagen wants to add more models and increase production in Brazil

Article by Christian A., on March 25, 2011

Volkswagen AG will add more models and increase production in Brazil in an attempt to wrestle the top spot away from Fiat S.p.A. in this rapidly growing auto market. In an interview, the head of VW’s Brazilian operations, Thomas Schmall, said that competition in Brazil is “intense” and VW expects it will “become even more intense in the future.”

VW is expanding three of five plants in Brazil to increase sales 40 percent to 1 million vehicles in the next four years, Schmall said. VW is investing EUR2.3 billion ($3.3 billion) in the country through 2014 as a strong currency, a growing middle class and job creation ahead of the 2014 World Cup and 2016 Olympics fuel demand.

According to industry researcher IHS Automotive, auto sales in Brazil, VW's third-biggest market after China and Germany, will grow 40 percent by the end of 2016 to 3.64 million vehicles annually.

In 2011, Fiat leads with a 22.3 percent share of the car and light truck market through mid-March 2011, according to data from Brazilian dealers association Fenabrave.

VW is in second place with 21.8 percent and GM is third with 18.2 percent. VW and Fiat have been trading the top spot back-and-forth, while dealing with the pressure from rivals pouring in to capitalize on the market's potential.

Paulo Sergio Rosa, an automotive consultant from Consultoria Columbia in Sao Paulo, said the country has never experienced a moment such as the present one, “having 45 brands selling their cars here.” 

Topics: vw, brazil

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries