Volkswagen Truck & Bus to invest EUR420m in Brazil for production modernization
Volkswagen Truck & Bus’s Brazilian commercial vehicle brand is planning to invest €420m in Brazil over the next five years for new products and production modernization.
The money will be used to renew the company's product portfolio, upgrade its facility in Resende, and develop connectivity services.
Volkswagen Caminhões e Onibus said the investment is the biggest ever by Volkswagen's Brazilian truck and bus unit.
At the Resende facility, the company’s staff work together in partnership with suppliers in a modular production system sharing tasks.
Volkswagen Truck & Bus CEO and Volkswagen AG Board of Management member responsible for commercial vehicle activities, Andreas Renschler said: “We believe – despite the current market situation – that Brazil is an important market for trucks and buses. It has always been a key market for the German industry and it will be again.
“I am confident that the Brazilian economy has bottomed out and will recover again in the next few years. In order to be prepared for this, we are now taking money into our hands to be able to continue to offer excellent products and state-of-the-art production. The entire Latin America region plays a major role in our growth strategy.”
Volkswagen Caminhões e Ônibus has been leading the Brazilian market in terms of truck sales for the past 13 years. The company’s CEO Roberto Cortes noted that this could be advantageous for the company, given the tough economic situation.
He also noted that Volkswagen has been selling branded trucks and buses for the past 35 years and the plant in Resende is about 20 years old.
Cortes said: “It is only through our innovative production concept which sees us work together under one roof with seven partner firms that we have been able to join forces to take the necessary action to overcome the current crisis and equip ourselves to deal with an upturn that is sure to come.”
Image: Volkswagen Truck & Bus CEO Andreas Renschler (left) and Volkswagen Caminhões e Ônibus CEO Roberto Cortes meeting Brazilian President Michel Temer. Photo: Courtesy of Volkswagen AG.