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VW plans 2bn factory in Pernambuco with Brazilian long-term soft loan

Thursday, October 27th 2011 - 20:41 UTC
Full article 3 comments
The project involves a production of 200.000 subcompact vehicles The project involves a production of 200.000 subcompact vehicles

Volkswagen AG is negotiating with Brazilian authorities to build a 2 billion dollars factory in Brazil -- the latest foreign automaker looking to raise local output after a tax increase on imported cars

Brazil said in September it would raise a tax on autos with less than 65% local content in a move to support local manufacturing jobs amid a slowdown in Latin America's largest economy.

Several automakers have since confirmed plans for new production in the country, including Nissan Motor Co Ltd and Renault SA and China's JAC Motors.

Earlier on Wednesday, newspaper Valor Economico reported that Volkswagen and Brazil's north eastern state of Pernambuco are finalizing a deal to build a factory there, citing people with knowledge of the situation.

The company wants a 2 billion Reais (1.12 billion dollars), 30-year loan from state development banks BNDES to seal the deal Valor added.

An announcement on the investment is likely on Nov. 8, Valor noted, adding the new facility could produce as many as 200,000 subcompact vehicles a year. The model being considered for the factory is the Up! Sub-compact, which was introduced at a car fair in Frankfurt this year, Valor added.
 

Categories: Investments, Brazil.
Tags: Brazil, Volkswagen.

Top Comments

Disclaimer & comment rules
  • briton

    it seems a lot of countries are investing in brazil.

    but on the other hand, very little for argentina,
    I wonder why ?

    Oct 27th, 2011 - 09:21 pm 0
  • Retroqqq

    lol briton u so funny

    http://www.tyrepress.com/News/23615.html

    http://www.tyrepress.com/News/23615.html

    http://www.tyrepress.com/News/23615.html

    Oct 27th, 2011 - 10:05 pm 0
  • briton

    your point is taken, but tyres rather than the whole thing,
    if brazil was truly your friend, would it not be shared,
    she seems quite happy to take the lot,
    mind you, if the petrol keeps going up, it might be better to make bicycles, .

    Oct 28th, 2011 - 05:43 pm 0
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