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Car manufacturers announce major Brazil auto investments
31/10/2011
Volkswagen AG and PSA Peugeot Citroen have both announced major new investment plans in Brazil, with the Brazilian production capacity of both companies expected to surge.
The unveiling of the plans is thought to be in response to the announcement in September that the Brazilian Finance Ministry is to raise its tax on cars that are made out of less than 65 per cent locally-made components.
The scheme looks to have worked to great effect, after PSA Peugeot Citroen said last week it will invest 3.7 billion reals ($2.1 billion) in Brazil before 2015, in a bid to double its production rate. The news came hot-on-the-heels of the announcement by Volkswagen AG that it was in negotiations to build a new $2 billion factory in Brazil.
The factory, according to the newspaper Valor Economico, would be in the northeastern state of Pernambuco and produce as many as 200,000 subcompact vehicles - thought to be the brand new Up! model - every year.
Carlos Gomes, Peugeot's chief representative in Latin America, said that they hoped to increase their production capacity to 300,000 annually, and that they would launch eight new models in the Latin American market.
The unveiling of the plans is thought to be in response to the announcement in September that the Brazilian Finance Ministry is to raise its tax on cars that are made out of less than 65 per cent locally-made components.
The scheme looks to have worked to great effect, after PSA Peugeot Citroen said last week it will invest 3.7 billion reals ($2.1 billion) in Brazil before 2015, in a bid to double its production rate. The news came hot-on-the-heels of the announcement by Volkswagen AG that it was in negotiations to build a new $2 billion factory in Brazil.
The factory, according to the newspaper Valor Economico, would be in the northeastern state of Pernambuco and produce as many as 200,000 subcompact vehicles - thought to be the brand new Up! model - every year.
Carlos Gomes, Peugeot's chief representative in Latin America, said that they hoped to increase their production capacity to 300,000 annually, and that they would launch eight new models in the Latin American market.
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