Over the next five years, Volkswagen’s Truck and Bus Division will invest $447,3-million (about R6,3-billion) in modernising its Brazilian plant at Resende and renewing its product portfolio.

Andreas Renschler, CEO of Volkswagen Truck & Bus, said the Latin American region played a major role in the company’s growth strategy. “I am confident that the Brazilian economy has bottomed out and will recover again in the next few years.

“In order to prepare ourselves for this, we have decided to invest in the country so that we can continue to offer excellent products manufactured in state-of-the-art facilities.”

South Africa sources Volkswagen branded trucks from the plant which, over the years, has earned a reputation for innovative production concepts. “We work together under one roof with seven partner firms,” says Roberto Cortes, CEO of Volkswagen Caminhões e Ônibus. “It is only through our innovative production concept that we have been able to equip ourselves to deal with the upturn that is sure to come.”

Renschler, who is also Chairman of the Federation of German Industry’s Latin America Committee, recently joined Cortes in Brazil to brief President Michel Temer on the planned investment.