Updated February 2nd, 2024 at 09:08 IST
Volkswagen to invest $1.83 billion in Brazil operations
This increased investment surpasses Volkswagen's initial 2022-2028 Brazil investment plan, bringing the total to 16 billion reais.
Volkswagen in Brazil: German automaker Volkswagen announced on Thursday its plan to invest an additional 9 billion reais ($1.83 billion) in its Brazilian operations over the next five years. The investment will also involve the launch of 16 new models, including hybrid and electric vehicles.
This increased investment surpasses Volkswagen's initial 2022-2028 Brazil investment plan, bringing the total to 16 billion reais. The expanded commitment will allow the company to manufacture four additional models compared to the previous plan. This includes the production of the first Brazil-made hybrids, a fully electric model, and a pick-up truck.
Volkswagen's Brazil Chief Executive, Ciro Possobom, emphasised the company's confidence in Brazil, stating, "Volkswagen is reaffirming its confidence in Brazil and more than doubling its investments."
The production of the newly planned pick-up truck is slated for Parana state, while the three additional models and a new hybrid engine will be manufactured at various factories around Sao Paulo state. Additionally, the company will focus on developing an advanced driver assistance system aimed at enhancing vehicle safety.
In 2023, Volkswagen reported an expansion of its Brazilian market share by just over 2 percentage points, reaching 15.8 per cent. During the year, the company sold more than 345,000 units in the region.
The announcement coincides with an upcoming visit by President Luiz Inacio Lula da Silva to a factory in Sao Paulo state for an event scheduled on Friday.
(With Reuters inputs)
Published February 2nd, 2024 at 09:08 IST