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Volkswagen Group invests in Brazilian growth market

  • 2.3 billion euros for plant expansion and new products
  • Delivery target by 2014: one million vehicles per year

Volkswagen will continue to pursue its growth course in Brazil over the coming years. The company will be investing a total of 2.3 billion euros in new products and manufacturing capacity expansion in the country between 2009 and 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.

“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, commented.

The sum of 2.3 billion euros has been earmarked for investment in developing new products and in expanding capacity in Anchietá, Taubaté and the engine plant in São Carlos. With a daily production capacity of 3,000 vehicles, Volkswagen do Brasil is today already the country’s largest automaker. Volkswagen also has the largest dealer network in the Brazilian automotive industry with 600 dealers located across the country. Deliveries to customers by Volkswagen do Brasil have risen by 70 percent since 2005 to 585,000 units in 2008. Local production will total some 800,000 vehicles this year.

The Volkswagen brand is launching 26 product innovations in Brazil during this year and next year under its product initiative. Over the last two years, Volkswagen has completely rejuvenated its product range with the introduction of the new Gol, Saveiro, Voyage and Fox. The new Cross Fox will debut at the end of November. The Passat CC, Eos and Tiguan are available as imported vehicles.

Brazil is seen as a market with high growth potential. Statistics indicate there is at present only one vehicle per seven inhabitants. In Germany, this figure is one vehicle per two inhabitants. Forecasts indicate that vehicle density in Brazil will rise to approximately one vehicle per four inhabitants over the next five years. Deliveries by the Volkswagen Passenger Cars brand during the first ten months of 2009 rose to approximately 529,000 units (2008: 456,500, + 15.9 percent). Market share increased by 1.7 percent to 25.7 percent. Brazil is the Volkswagen Group’s third largest market after China and Germany.

- Volkswagen Group


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