Volkswagen invests heavily in Brazil

Volkswagen is increasing its investments in Brazil from the previously planned seven billion reais by 2026 to 16 billion by 2028. By then, the carmaker plans to launch 16 new models nationwide, including hybrid and electric vehicles.

Converted, Volkswagen’s investment in Brazil corresponds to an increase from around 1.4 to 3.2 billion dollars. According to the manufacturer, the investments will “cover the development and production of innovative projects with a focus on decarbonisation for Volkswagen’s four factories in Brazil.” Specifically, it will launch and produce four new vehicles there, including a pick-up, a new hybrid engine and a new platform called MQB Hybrid.

Regarding the platform, Volkswagen states that the new platform includes a combination of the most advanced combustion and electrification systems, using a high-voltage system,” and that it was explicitly developed for the SAM region – i.e. South America – with the participation of Volkswagen do Brasil Engineering. Thus, the German manufacturer primarily pursues hybridisation in Brazil rather than a ramp-up of pure EVs. Battery-electric Volkswagens are nevertheless available in the country. The ID.4 and ID.Buzz have been on sale there since last year.

Domestic production takes place at the Anchieta plant in São Bernardo do Campo, in Taubaté (both in the state of São Paulo) and in São José dos Pinhais (in the state of Parané). The engine plant, where the new hybrid engine is developed and built, is located in São Carlos, also in the state of São Paulo.

Volkswagen is not giving any details about the four vehicles it will launch and manufacture in Brazil – except that one will be a pick-up. However, they are likely to be electrified cars, as the manufacturer states that the quartet “will be key to further boosting the brand’s decarbonisation strategy in the South American region.”

Ciro Possobom, CEO of Volkswagen do Brasil, emphasises that Volkswagen do Brasil was the brand with the highest sales growth in Brazil in 2023 and the market leader in the most important segments – SUVs and passenger cars. “Consumer preference is the result of our investments and the strength of our product offensive, offering the most complete portfolio on the market. Now, Volkswagen is reaffirming its confidence in Brazil and more than doubling its investments to 16 billion reais,” he says. “In this way, we reinforce our commitment to the country, our customers, dealers, suppliers and employees.”

reuters.com, vwnews.com.br (in Portuguese)