{"id":13101,"date":"2021-11-08T06:57:43","date_gmt":"2021-11-08T11:57:43","guid":{"rendered":"https:\/\/autosector.com\/auto\/?p=13101"},"modified":"2021-11-08T06:57:43","modified_gmt":"2021-11-08T11:57:43","slug":"vw-back-to-profit-in-latin-america","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=13101","title":{"rendered":"VW back to profit in Latin America – Just Auto"},"content":{"rendered":"
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Volkswagen said it would invest EUR1bn in Latin America and expected to make a profit there in the 2021 financial year, for the first time since the 2013 recession.\n<\/p>\n

The automaker would build the MQB platform based Polo Track at its plant in Taubate, Brazil for sale in 2023.\n<\/p>\n

VW would develop digital business models and expand biofuel research to boost its \u201ctransformation into [a] software-oriented provider of sustainable mobility\u201d.<\/p>\n

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VW CEO Ralf Brandstaetter said: \u201cIn Latin America, we have demonstrated that we can be profitable despite a low overall market and challenging conditions. We are now continuing to invest in targeted projects that safeguard Volkswagen\u2019s sustained profitability in future.\u201d<\/p>\n

The EUR1bn would be spent over the next five years.<\/p>\n

VW said its return to profit was due partly to fixed costs reduction as well as capacity \u201cadjustments\u201d at the six plants in the region under its \u201cambitious\u201d restructuring programme.\n<\/p>\n

In 2017 it began to \u201cradically renew\u201d its product line with the first of 20 new models tailored to South American markets launched in four years, the majority built in Brazil.\n<\/p>\n

VW CFO Alexander Seitz said: \u201cRobust and profitable regions are a key success factor in our Accelerate strategy. The expected turnaround in Latin America is a very important milestone on the road to sustained competitive profitability.\u201d\n<\/p>\n

Further investment in the existing biofuels R&D centre is being made because some areas in Latin America are not currently well suited for electrification.\n<\/p>\n

\u201cParticularly in regions where travel involves covering long distances, where charging networks are not widespread and where green energy supply levels are low, biofuels with a positive CO2 balance can build a bridge to the electric era,\u201d VW said.\n<\/p>\n

\u201cBioethanol is a meaningful regional complement to our electric strategy because it reduces carbon emissions by up to 90% compared to petrol. It is an excellent example of \u2018think global, act local\u2019,\u201d VW said.\n<\/p>\n