Volkswagen will start producing buses and trucks in Argentina: how much will it invest?

Volkswagen Group Argentina announced Thursday an investment of US$50 million to begin manufacturing trucks and buses in the province of Córdoba, Argentina. Production will begin in 2024, according to the company’s CEO, Marcellus Puig.

The German capital company will aim to produce 3,000 trucks and buses per year. There will be four truck models and one bus model, and part of the production will be exported to countries in the region and the rest of the world.

The relevance of the automotive sector: with a total of US$3.702 billion exported in the first half of 2022, mainly to Brazil, vehicles make up the fourth export complex in Argentina.

“It is a pride to be able to continue announcing new investments to carry out new innovative projects of the VW Group in Argentina, as is the case of Ducati with the recent start of Scrambler production in the country, and now this ambitious truck and bus project,” Puig said.

The group plans to produce 1,000 units of the Ducati brand annually in Córdoba from 2023, according to the Government of the province of Córdoba.

“This is a central axis of the country’s project that we have to build, which implies replacing imports with competitive national production, but also boosting the productive capacity to export in the region and the world,” said the Minister of Economy, Sergio Massa, who participated in the ad.

Through this investment by Volkswagen, two versions of the VW Delivery trucks, two of the VW Constellation and the Volksbus buses that were currently imported from Brazil will begin to be produced at the Córdoba Industrial Center in 2024.

PRODUCTION OF CARS AND VEHICLES IN ARGENTINA IN 2022

According to data reported by the Association of Automotive Factories (ADEFA), vehicle production grew by 26.6% between January and November 2022, compared to the same 11 months in 2021.

At the same time, the chamber announced that exports during the same period registered a rise of 25%.

Volkswagen, for its part, plans to increase production at its Pacheco plant, in the province of Buenos Aires, by between 20-30% in 2023, according to what Martín Massimino, commercial director of Volkswagen in Argentina, told the Autoweb portal.

The company manufactures the Amarok and Taos models at that plant.

With information from Bloomberg Línea