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The Multinational Volkswagen Announced Billion-Dollar Investment in Brazil That Promises to Generate Thousands of Jobs and Boost Its Business Model in South America.
Volkswagen, the German automaker, announced its new investment plans in Brazil on Tuesday (4). The multinational intends to invest €1 billion in the country over the next 4 years, equivalent to R$ 5.2 billion at current exchange rates. The focus is to expand the company’s size by 40% in its largest market in South America by 2027, generating thousands of jobs in the region.
The Company’s Investment Will Bring 15 New Vehicles
Volkswagen’s investment strategy, which promises to generate various jobs, is to increase the production of electric, hybrid, and ethanol-powered vehicles in the domestic market. The expectation is to launch 15 new models in this category by 2025. As part of the celebration of VW’s 70 years in the country, Volkswagen has already announced that the models Id, 4 and Id. Buzz, considered the electric successors of the Kombi, will be available in the country starting in the second half of this year.
According to Alexander Seitz, CEO of the Volkswagen Group in South America, with the investment, the company is producing vehicles that are extremely attractive to consumers in Brazil and South America. This will help Volkswagen push forward the transition to zero-carbon and full network mobility, and the company is making good progress while generating various jobs. The new Polo is already the best-selling car in the country. The launch of the best-selling ID.4 and the iconic ID.Buzz in the national market will give Volkswagen a boost.
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Automaker Aims for 11% Annual Growth
The German automaker claims that its goal, with the billion-dollar investment in Brazil, is to grow up to 11% each year in South America until 2030. Another area that the company promises to expand in the country is subscription cars, which is expected to generate various jobs.
According to Thomas Schäfer, CEO of Volkswagen, with the rapidly expanding automotive market, South America is of strategic interest to the company. In recent years, the local team has achieved greater profitability and competitiveness. The goal now is to continue operating in terms of cost while implementing the product offensive.
It is worth noting that the investment announcement comes one week after the automaker suspended production at the country’s factories. The temporary suspension is motivated by the stagnation of the new car market in the country, despite the government’s incentive policy for vehicle consumption.
The estimate is that the stoppage will last only as long as the government’s program is still in effect. It is important to highlight that the federal government has extended the deadline for the program, which, according to the vice president of the Republic, Geraldo Alckmin, should be completed when there is a drop in the Selic interest rate.
Volkswagen Presents New T-Cross
Far from Brazil, Volkswagen has announced the first images and information about the new T-Cross in Europe, a compact SUV that is one of its best-selling global models.
As expected, the 2024 T-Cross features a bolder and more aggressive appearance, thanks to the new grille divided by a chrome strip and the bumpers with triangular elements accommodating LED lights, from the system called IQ.LIGHT, for the first time in the SUV.
At the rear, besides the redesigned bumper with a small honeycomb strip, the new layout of the taillights stands out, displaying lighting in the shape of an X. Volkswagen did not go further, only changing the wheels of the European model.
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