27 October 2012

Volkswagen Group plans to invest €3.4 billion in Brazil

São Paulo/Wolfsburg – 21 October 2012 - The Volkswagen Group continues on its growth trajectory in Brazil and is expanding its ecological and social commitment. “The Brazilian automobile market has significant growth potential. The Volkswagen Group will harness this growth and drive it forward: As an investor and innovation engine, as an employer, and by creating opportunities for people in this country”, Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said on Sunday on the eve of the São Paulo Motor Show, and added: “Brazil is very much a cornerstone of our Strategy 2018.” 

In this context, the Volkswagen Group will be investing €3.4 billion in Brazil during the period to 2016 in new products and technologies and in expanding its manufacturing capacities. Environmentally-friendly production at the six plants operated by the company in Brazil as well as expanding the development of renewable energies are one focus of investment. Going forward, the Taubaté plant will build up to 1,300 Volkswagen Gol and Voyage models per day using new, environmentally-friendly painting standards. “Expansion of the paint shop in Taubaté is a further milestone in the Volkswagen Group’s South America strategy. Apart from increasing our production capacity we will also be achieving a significant improvement in resource efficiency”, said Dr. Michael Macht, Member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for Group Production.  

The state-of-the-art filler-less painting process combined with an innovative method for collecting overspray results in energy savings of 30 percent per unit, while water consumption is cut by more than 20 percent. Investment in the paint shop totals €157 million. In addition, €126 million is being invested in expanding capacity at São Carlos, the Group’s Brazilian engine plant, from the present 3,800 units to 4,800 engines per working day. Both the EA111 internal combustion engine (Flex-Fuel) and engines featuring the latest technology will be built in a new production hall. 

Volkswagen is simultaneously intensifying its role as a pioneer in protecting the environment and preserving resources, and is planning a second hydropower plant in Monjolinho/São Paolo to generate 25.5 megawatt hours. Volkswagen is investing €66 million in the project. Back in 2010, Volkswagen – as the first and only automaker in Brazil – invested some €58 million in a hydropower plant at Anhanguera near Guará/São Paolo which generates 22.7 megawatt hours. 

The two hydropower plants will mean that “green” energy will account for 94 percent of Volkswagen’s energy needs in future and that the company will generate 40 percent of its energy needs by itself. 

For the Volkswagen Group, Brazil is a strategic growth market with enormous potential. Today, the Group has a presence in the country with ten brands and a broad range of products. The company further increased deliveries in Brazil from January to September 2012, and handed over 573,700 vehicles to customers. Last year, the South American subsidiary of the German Volkswagen Aktiengesellschaft manufactured 828,400 vehicles for sale in Brazil and for export. 

Source: Volkswagen Group