Brazilian bonus
October 4, 2011
Volkswagen CEO Martin Winterkorn brought good tidings with him to Sao Paulo, where he came to accept an award for the "German-Brazilian Personality of the Year." He announced that Europe's biggest carmaker would invest 3.4 billion euros ($4.5 billion) in its Brazilian operations.
"This will set the course for sustainable growth in Brazil," Winterkorn said as he collected the business award, which recognizes one German and one Brazilian every year for their achievements in promoting bilateral trade relations. The Brazilian award went to Sergio Cabral Filho, governor of the state of Rio de Janeiro.
"Obviously this is a great honor," said Winterkorn. "But I won't take it as a personal honor. It's for all our co-workers."
Key market
"For more than 50 years we have been rooted as the engine of the Brazilian automobile industry," Winterkorn said. VW has four factories in Brazil that employ around 23,000 people, making it one of the biggest employers in the country's auto sector. The plants roll out 3,500 vehicles in 21 models every day.
"By next year, we'll be able to celebrate the 20 millionth Volkswagen made in Brazil," Winterkorn added. He said the company's aim was to sell 5 million vehicles per year in Brazil by 2015. VW opened its first foreign factory in Sao Paulo in 1959. Winterkorn was scheduled to visit this plant on Tuesday.
In mid-September, the VW board agreed to invest a total of 62.4 billion euros in foreign market development and expansion by 2016. Just over 5 percent of the money will go to Brazil
Other carmakers are also seeking to invest in Brazil, which is considered a key developing market. According to a report in French financial paper La Tribune, French-Japanese company Renault-Nissan intends to invest 1.1 billion euros in the construction of a Nissan factory in the state of Rio. The plant will have an annual capacity of 200,000 units.
Author: Ben Knight (AP, dpa)
Editor: Sam Edmonds