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News > Latin America

Volkswagen to Invest $650 Million in Argentina Plant, Creating 2,500 Jobs

  • Volkswagen said the investment would create about 2,500 jobs.

    Volkswagen said the investment would create about 2,500 jobs. | Photo: Reuters FILE

Published 12 November 2017
Opinion

The automaker plans to introduce 20 new models in South America by 2020, including the first sports utility vehicle for the Argentine market.

Germany’s Volkswagen said the company is set to pump $650 million into its auto outlet in Pacheco, Argentina.

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The motor company, in a statement on Friday, said the more than half-a-billion-dollar investment will facilitate the manufacture of a new sports utility vehicle.

Volkswagen added that the investment would create about 2,500 jobs.

The automaker plans to introduce 20 new models in South America by 2020, including the first sports utility vehicle for the Argentine market as well as a redesigned line of pickup trucks.

“Volkswagen believes in the great potential of the South American continent,” company regional chief Pablo Di Si said in the statement. “The investment announced today creates perfect conditions for efficient manufacturing of our new sport-utility vehicle.”

Di Si, along with brand chief executive Herbert Diess, brokered the deal with Argentine President Mauricio Macri.

The South American country’s car output reportedly jumped 15.9 percent in Oct. – over the same period last year – to 43,854 units, according to figures reported by the Association of Automotive Factories.

“We are breaking records, more than 780,000 cars sold (year to date) and, more importantly, a record for trucks, which means production is moving, construction is moving,” Macri said during the announcement of the venture.

Volkswagen said it aims to systematically and strategically regionalize operational responsibilities to its various plant locations, moving away from the centralized headquarters in Wolfsburg, Germany.

A seven-seater Tiguan, in addition to a Golf-sized Tharu-branded crossover, is also in the works to enter the company's Brazilian market, early next year.

All news additions and improvements to the brand will be introduced under the German motor company's South American “biggest model offensive in the history of the brand” initiative.

“South America and Argentina play an important role in this regard. Key elements of the growth strategy are the biggest model offensive in the history of the brand and the systematic regionalization of our business,” Diess urged.

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