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RIO DE JANEIRO, Nov.8 (Xinhua) -- German automaker Volkswagen announced Tuesday that it would invest 7 billion reais (2.18 billion U.S. dollars) in Brazil by 2020, to cover the production of a new family of cars and to prepare the ground for an expected rise in sales across Latin America.
Volkswagen's head for South America David Powels said from the Sao Paulo International Motor Show that the new family of vehicles would be made up of four cars. Furthermore, the investment will cover an overhaul of production at the company's two factories in Brazil.
The German automaker currently holds around 12 percent of the Brazilian automotive market and is at just above 10 percent in Argentina.
Volkswagen announced it intended to use its factories in both countries to boost its presence across regional markets by 3-4 percent.
This investment will come as a major boost for the belabored Brazilian automotive industry, which has been hit by the recession. In October, sales were down 22.3 percent from a year earlier.
However, Powels said that he hoped stability would return in 2017 "as there is no possibility for it to get worse this year". He admitted that the recovery would "not come from a miracle and would be gradual."
