Volkswagen invests additional €170 million in Brazil: Will produce Golf Mk7
Following opening of a new Volkswagen plant in China, the German automakers have set their sights on extensive expansion plans in Brazil. It is here that Volkswagen AG will be investing an amount of €170 million ($230 million) and will commence assembly of their new Golf at the existing company plant in Curitiba.
Till local production in Brazil’s, Curitiba plant gets underway, the company will be importing the New Golf into the country from Germany. The New Golf is also to be built in Mexico from the first quarter of 2014. For more information, scroll through the press release below
Wolfsburg / Brasilia, 2013-10-04
Volkswagen to produce new Golf in Brazil, too
• Expansion of Curitiba for production of new Golf
• Additional investment of €170 million
Introduction of highly advanced manufacturing technology for more flexible production Volkswagen do Brasil is to produce the new Golf in Brazil and is investing an additional amount of €170 million in the Curitiba plant (Paraná State) for this purpose. This was announced by Thomas Schmall, President of Volkswagen do Brasil, yesterday on the occasion of a meeting in Brasilia with Brazilian President Dilma Rousseff.
“This investment decision bears witness to Volkswagen’s considerable confidence in the Brazilian automobile market. Brazil is becoming one of the world’s largest vehicle production and sales markets. With the Modular Transverse Toolkit (MQB), we are now bringing our most advanced production technology to Brazil, too,” said Dr. Michael Macht, Member of the Board of Management of Volkswagen Aktiengesellschaft responsible for Group production and the South America region, commenting on this decision.
“We are investing €170 million in highly advanced manufacturing facilities – in addition to our total investment in Brazil of €3.4 billion by 2016,” Thomas Schmall, President of Volkswagen do Brasil, explained. He said that the planned production of the new Golf at the Curitiba plant bore witness to the success of the collective bargaining negotiations held last year. As a result, the flexibility of production as well as competitiveness had been increased and the manufacture of new models of this plant had been facilitated. He added that the expansion would increase the daily production capacity of the plant by up to 20 percent. Until production starts, the new Golf will continue to be imported to Brazil from Germany.
On March 23, 2013, Volkswagen do Brasil celebrated its 60th anniversary. Over the past six decades, Volkswagen has grown to become Brazil’s largest automaker, with a total of more than 20 million vehicles produced. The company’s most successful model is the Gol. In 2012, the Brazilian Volkswagen was the country’s best-selling car for the 26th time in succession; the Gol again leads Brazilian registration statistics in 2013. With more than 3 million vehicles exported, Volkswagen is also the largest exporter in the Brazilian automotive industry.
The Curitiba plant started production in January 1999 and is among the Volkswagen Group’s most advanced plants. Audi is also to make the Audi A3 sedan in Curitiba. Since Audi production started at Curitiba, more than 2.2 million vehicles have rolled off the assembly line there. Currently, the workforce of 3,300 produces the Band Fox, Fox BlueMotion, CrossFox and SpaceFox.
In Brazil, Volkswagen is also playing the role of a pioneer in environmental sustainability. Volkswagen already introduced the first flex-fuel vehicles to the market in March 2003. This innovative powertrain technology allows the use of gasoline and/or bio-ethanol as a fuel and therefore makes a key contribution to CO reduction. In addition, Volkswagen is the first automaker in Brazil to invest in the generation of power from renewable sources. Since 2010, Volkswagen has taken almost 20 percent of its energy requirements from a hydropower plant in the state of São Paulo. Volkswagen do Brasil is also involved in large number of nature conservation projects. For example, a green belt with a length of 5.8 kilometers and an area of 116 hectares has been created around the reservoir at Anhanguera power plant. These woodlands form part of a reforestation program for more than 100 indigenous tree species.