Volkswagen to invest EUR3.4 billion in Brazil for model, plant upgrades

Article by Anita Panait, on October 24, 2012

Volkswagen will invest up to EUR3.4 billion ($4.4 billion) to upgrade its model lineup and plants in Brazil.  According to VW chief executive Martin Winterkorn, the investment is part of the carmaker’s goal to become the world\'s biggest carmaker by 2018, noting that Brazil is a cornerstone of the Strategy 2018.

The carmaker’s investment plan in Brazil runs through 2016 and includes an investment of EUR126 million at its component factory in Sao Carlos in a bid to increase output to 4,800 engines a day from the current 3,800. VW hopes its strategy in Brazil could help it offset the dwindling demand for vehicles in Europe.

However, VW is not without rivals in Brazil as the other carmakers from Asia and the United States are also making their moves in the South American country. According to IHS Automotive, vehicle sales in Brazil are expected to jump by 8.6 percent this year.

Michael Macht, VW production chief, said that the German carmaker’s investment in Brazil will involve standardizing factories and installing technology to produce vehicles based on its MQB platform, the same architecture that underpins the VW Golf and other models. Macht remarked that he sees enormous potential in Brazil just from the systemic implementation of parts sharing.

Topics: vw, brazil, investment

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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