Volkswagen do Brasil said Thursday it will invest 6.2 billion Brazilian reals, or EUR2.3 billion ($3.5 billion) in Brazil between 2010 and 2014 and aims to sell 1 million cars in the country by 2014 in an attempt to overtake Fiat (F.MI) as the country's number one car and truck retailer.
Volkswagen AG's (VOW.XE) local chief executive, Thomas Schmall, said that the money would come from European headquarters as well as the subsidiary offices in Brazil.
"We will enjoy significant growth in Brazil this year and win market share. Our target is to sell one million vehicles per year in Brazil by 2014, thus making an important contribution to the success of the Group's Strategy 2018," Schmall said in a statement.
Deliveries to customers by Volkswagen do Brasil have risen 70% to 585,000 units in 2008 since 2005.
The 2010-2014 budget marks Volkswagen's largest investment ever in Brazil.
Brazil has become an important market for European car makers. While car sales have declined in Europe and the U.S., Brazil car sales continue to rise and will break a record 3 million vehicles in 2009.
Lower interest rates, tax breaks, and Volkswagen's introduction of its new Gol model helped push national sales higher despite a recession.
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