Volkswagen has announced a significant increase in its Brazil investments, planning to add R$9 billion ($1.82 billion) by 2028.
This move will push the company’s total investment to R$16 billion ($3.23 billion) in five years.
Starting in 2022, the initial phase involved R$7 billion ($1.41 billion).
The aim is to create hybrid cars, aligning with efforts to cut emissions and reach carbon neutrality by 2050.
This development follows announcements from BYD and General Motors, who have committed R$10 billion ($2.02 billion) to Brazil.
Their investments underline Brazil’s growing appeal in the automotive sector.
The German carmaker will unveil 16 new models by 2028.
The launch event, featuring Brazilian President Luiz Inácio Lula da Silva, will take place on February 2 at the São Bernardo do Campo factory.
Ciro Possobom, Volkswagen Brazil’s president, shared that electric vehicle (EV) production would start by the decade’s end.
The delay stems from the local supply chain’s current limitations. Meanwhile, Volkswagen will import EVs to meet demand.
In addition, Possobom also highlighted Volkswagen’s focus on innovation and efficiency.
The company is adopting artificial intelligence for inspections, 3D printing in manufacturing, and virtual reality in its processes.
These steps show Volkswagen’s commitment to using advanced technology to improve its operations and offerings in Brazil.
Background
Volkswagen’s investment aligns with Brazil’s growing status as a key player in the global automotive industry.
This move not only showcases Brazil’s appeal to international investors but also reflects the country’s potential for sustainable transportation.
In short, as global demand for eco-friendly vehicles escalates, Brazil positions itself as a pivotal market and production hub.