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:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 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