Despite the continuing challenges of the corona pandemic and the worldwide semiconductor shortage, Volkswagen expects to report a positive result in Latin America for the first time since 2013. Volkswagen is to invest some €1 billion over the next five years to further strengthen its competitive situation in this important market and be geared to sustained profitability.
In addition to further local vehicle projects, in particular digitalization and decarbonization in South America are to be given an additional boost. This includes a research center for biofuels as a bridging technology for this market to complement Volkswagen’s global electrification offensive.
Following the deep recession in 2013, Volkswagen is celebrating a remarkable comeback on the Latin American market with the expected return to profit in the 2021 financial year. This success is in part attributable to systematic reductions in fixed costs as well as capacity adjustments at the six plants in the region under an ambitious restructuring program.
Volkswagen is continuing its successful strategy in Latin America focusing on a product portfolio tailored to the needs of the region with the market launch of the new compact car family for the entry-level segment starting in 2023. The first model is the Polo Track based on the MQB platform.
In addition to expanding the product portfolio, Volkswagen is also stepping up the pace of the transformation into a software-oriented provider of sustainable mobility with these additional investments in Latin America. Here, too, Volkswagen is tailoring its measures to the specific needs of the market.