Lula visits Volkswagen in announcement of R$16 billion in investments in the country

Volkswagen do Brasil announced this Friday (2) a investment of R$16 billion in the automobile sectorwhich represents the largest contribution by an automaker in the country in the post-pandemic period.

The announcement of Volkswagen do Brasil’s New Investment Cycle and new projects for the brand takes place this afternoon at the factory’s headquarters in São Bernardo do Campo (SP), the political birthplace of President Luiz Inácio Lula da Silva (PT), who participated in the event after announcing the construction of the Santos-Guarujá immersed tunnel during the morning in Baixada Santista.

“When I left the presidency in 2010, the automobile industry sold 3.7 million cars per year. I returned to the presidency in 2023 and the automobile industry sells 2 million cars. We lost almost 50% because there was no purchasing power, because there was no consumption and because companies didn’t believe in Brazil. And our role is to guarantee political, economic, fiscal, legal stability and predictability”, said Lula during the event celebrating the 132nd anniversary of the Port of Santos.

In São Bernardo, Lula stated that in addition to Volkswagen’s investment, the automobile sector will invest R$41 billion in Brazil “because people started dreaming again and improving their lives”. “The last act I performed at a factory door I said some things. I said people would go back to eating meat. That Brazil would return to generating jobs and that Brazil would once again be respected in the world”, he said during his speech at the factory after arriving by ride in an open car to the event site and being greeted by workers.

In 2023, Volkswagen registered a 29.5% growth in sales volume in the country and consolidated its 15.8% share of the national market. For the 2022-2026 cycle, Volkswagen had already announced an investment of R$7 billion in Latin America. For the new cycle, scheduled for the years 2026 to 2028, an additional R$9 billion will be added. By 2028, the brand plans to launch 16 new vehicles, including hybrid, 100% electric and Total Flex models.

“Initially, the new contribution already includes the development and production of innovative projects focused on decarbonization for the four Volkswagen do Brasil factories”, declared the CEO of Volkswagen do Brasil, Ciro Possobom.

The new projects will mark the arrival of a new platform in Brazil: the MQB Hybrid project. The new modular platform, according to the company, is “innovative, technological, flexible and sustainable”, and includes a combination of advanced combustion and electrification systems, using a high voltage system. Associated with the launch of this platform, Volkswagen will launch four new vehicles (including a pick-up) and a new, more efficient engine for hybrid vehicles.

Two new vehicles will be produced at the Anchieta factory, in São Bernardo do Campo. A new pick-up will be produced at the factory in São José dos Pinhais (PR). The brand’s unit in Taubaté (SP) will manufacture an unprecedented car, 100% developed in Brazil. And the Volkswagen do Brasil engine factory, in São Carlos (SP), will produce the engine for hybrid vehicles.

New to the brand’s portfolio, according to Volkswagen, the new models are considered fundamental for boost the company’s decarbonization strategy in South Americaaligned with the global “Way to Zero” strategy, which provides for carbon neutrality in all Volkswagen units around the world, considering products and processes.