SAO PAULO Oct 3 German automaker Volkswagen AG
plans to invest 520 million reais ($235.9 million)
to begin assembly of its newest Golf model in Brazil, CEO Thomas
Schmall said on Thursday.
The new Golf factory in the southern state of Parana will
raise Volkswagen's auto production capacity in Brazil by 20
percent to 1,000 vehicles per day, Schmall said after meeting
Brazil's President Dilma Rousseff in Brasilia.
He said construction had already started and production
should begin in two years.
Volkswagen's announcement comes two days after fellow German
carmaker Daimler said it would invest $230 million to
build a factory to manufacture Mercedes-Benz C-Class and GLA
With 3.8 million vehicles sold last year, Brazil is the
world's fourth-largest car market after China, the United States
and Japan. Its premium segment is fledgling in size, however,
and represents only around 1 percent of sales, in part due to
heavy tariffs levied on imports.