MercoPress. South Atlantic News Agency

Volkswagen plans to invest 3.5 billion USD in next five years

The German car manufacturer is second to FIAT in the Brazilian market

Volkswagen do Brasil said Thursday it will invest the equivalent of 3.5 billion US dollars in Brazil between 2010 and 2014 in an attempt to overtake Fiat as the country's number one car and truck retailer.

Volkswagen local chief executive, Thomas Schmall, said that the funds would come from European headquarters as well as the subsidiary offices in Brazil.

The 2010-2014 budget marks Volkswagen's largest investment ever in Brazil.

Brazil has become an important market for European car makers. While car sales have declined in Europe and the US, Brazil car sales continue to rise and will break a record 3 million vehicles in 2009.

Lower interest rates, tax breaks, and Volkswagen's introduction of its new Gol model helped push national sales higher despite a recession.