German automaker Volkswagen has announced it will be adding $1.83 billion to its existing $1.4 billion investment (totalling $3.2 billion) in its Brazilian business and will be launching 16 new hybrid and electric models over the next five years.
Volkswagen stated the investments will cover the “development and production of innovative projects with a focus on decarbonisation for Volkswagen’s four factories in Brazil”.
The funding aims to aid the automaker in the launching of their first Brazil-made hybrids, a 100% electric model and a pick-up truck.
Volkswagen has reportedly announced that it will be primarily focusing on the production of hybrid vehicles rather than a ramp up of pure electric vehicles (EVs).
Ciro Possobom, CEO of Volkswagen, said:
“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 [..] In this way, we reinforce our commitment to the country, our customers, dealers, suppliers and employees.”
Domestic production takes place at the Anchieta plant in São Bernardo do Campo, in Taubaté, and in São José dos Pinhais. The engine plant, where the new hybrid engine is developed and built, is located in São Carlos, in the state of São Paulo.
