Volkswagen to Invest €3.6 Billion in Brazil

Volkswagen AG plans to spend €3.6 billion in Brazil over the next five years on locally developed vehicles and technologies for the local market.

The company says a major emphasis will be on "environmentally compatible production." VW, Brazil's largest carmaker, operates four plants in the country in Anchieta, Curitiba, Resende and Taubate. Last year they built 761,000 vehicles, including 149,000 that were exported to 15 countries.

VW says its investment underscores the company's confidence in Brazil in spite of last year's 1% drop in sales to 3.77 million units. The decline was the country's first in a decade.

Brazil is VW Group's fourth-largest market after China, Germany and the U.S. The company sold 682,200 vehicles there last year, down 13% from its group volume in 2012. Its locally produced models include the entry-level Gol five-door hatch and its Voyage sedan and Saveiro pickup truck variants, Golf five-door hatch, Polo supermini, Suran mini-MPV and Up! city car.