VW’s Next Big Push is in South America

Brazil and South America, in general, had long been strongholds for VW, but an economic crisis has caused sales there to drop precipitously. Now, VW has a new strategy for the market based on a new factory and SUV.

As in the North American Market, VW is giving its South American wing more autonomy in the hopes that a more localized approach to management will allow the brand to react better and faster to the market’s unique needs.

To that ends, the brand is investing $653 million in its Pacheco plant in Argentina and will build a new MQB-based SUV for South America.

“Volkswagen believes in the great potential of the South American continent,” Volkswagen South America’s CEO Di Si said. “The investments create the optimal conditions for the efficient production of our new SUV – built in Argentina for the markets in South America.”

The new SUV will be one of 20 new cars for the market. The “biggest model offensive” in the brand’s history on the continent will also include a Golf-sized crossover, a seven-seat Tiguan, and much more.

“We are laying the foundations for the brand’s growth on international markets with Volkswagen’s Transform 2025+ strategy,” said Herbert Diess, CEO of the VW brand. “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.”

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