Volkswagen Truck & Bus Aims for Biggest CV Investment in Brazil
Published On Dec 14, 2016
Volkswagen Truck & Bus, with an investment of 420 million euros, has announced the biggest investment package it has ever made in a country. The auto manufacturer will be investing the entire amount in Brazil over a period of five years.
Andreas Renschler, CEO of Volkswagen Truck & Bus, speaking about the huge investment amount in Brazil, explained, "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."
These 420 million euros (which amounts to INR 3,060 crore) will be used by the manufacturer in modernizing its plant located in Resende, Rio de Janeiro and also for the development of the connectivity services offered. This is the largest amount of investment that Volkswagen has ever announced for its truck and bus unit development.
Andreas Renschler, alongwith Roberto Cortes, CEO of Volkswagen Commercial Vehicles, briefed Michel Temer, President of Brazil, on the plan for investments. Renschler, speaking on the developments, said, "German companies think long-term. We might not be the first ones to venture into new markets. But wherever we are, we persevere in difficult times too. Brazil in particular is a country with which we enjoy very successful business relations that go back decades and that will continue for a long time yet. That is why we are strengthening our commitment at Volkswagen Caminhões e Ônibus further."
Volkswagen has been ruling the truck sales in Brazil for 13 long years.