VW Confirms 2.3bn Euro Brazilian Expansion

Volkswagen has already announced its expansion plans for China and the rest of the world but the company is also looking to boost its Brazilian operations with the help of a 2.3 billion euro investment. Basically, with the help of plant expansions and new products, Volkswagen hopes to reach a delivery target of one million vehicles per year by 2014.

"The Volkswagen Group will strengthen its leading competitive position in Brazil over the long term with these investments," Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said. "Brazil is one of our most important growth markets worldwide. We expect demand there to rise significantly over the coming years and we are now systematically adjusting our manufacturing capacity," Winterkorn continued.

Specifically, Volkswagen will use the money to boost capacity in Anchietá, Taubaté and the engine plant in São Carlos.

The German manufacturer is also planning to expand its local lineup through the addition of new models. The new Cross Fox will be introduced at the end of this month while Passat CC, Eos and Tiguan are locally sold as imported vehicles. Volkswagen hopes to reach a total production of 800,000 vehicles in 2009. Brazil is the Volkswagen Group’s third largest market after China and Germany.

"We will enjoy significant growth in Brazil this year and win market share. Our target is to sell one million vehicles per year in Brazil by 2014, thus making an important contribution to the success of the Group’s Strategy 2018," Thomas Schmall, CEO Volkswagen do Brasil, stated.