SAO PAULO, Oct 3 Reuters)-German automaker Volkswagen AG plans to 520 million reais (235.9 million$) first meeting his latest golf model in Brazil to invest, CEO Thomas Schmall said on Thursday.
The new golf factory in the southern state of Parana raises Volkswagen car production capacity in Brazil by 20 percent to 1,000 vehicles per day, Schmall said after a meeting with Brazil's President Dilma Rousseff in Brasilia.
He said construction had already begun and the production should begin in two years.
Volkswagen announcement comes two days after German auto manufacturer Daimler said that it would invest $230 million to build a factory for the production of Mercedes-Benz c-class and GLA cars.
With 3.8 million vehicles sold in the last year, Brazil is the world's fourth-largest car market after China, the United States and Japan. Their premium boys in size, however, is and amounts to only about 1 percent of sales, raised partly because of heavy duties on imports.
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