8/29/2019

VW to Invest $577 Million in Brazilian Factory

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Volkswagen AG plans to spend 2.4 billion reais ($576 million) to upgrade its Sao Bernardo do Campo plant in Brazil, according to Sao Paulo’s governor.

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Volkswagen AG plans to spend 2.4 billion reais ($576 million) to upgrade its Sao Bernardo do Campo plant in Brazil, according to Sao Paulo’s governor.

Sao Paulo’s auto sector has been experiencing a resurgence under incentives rolled out by Gov Joao Doria that cut taxes 25% for a manufacturer who agrees to a project that invests at least 1 billion reais ($240 million) and creates 400 jobs, Reuters reports.

Doria says VW’s new investment will create 1,000 jobs. His incentive program was prompted last year by a warning from General Motors Co. that it might idle a plant in the region after sustaining heavy losses.

Ford Motor Co. announced in February that it is exiting the heavy-duty commercial truck business in South America that includes closing its 52-year-old plant in Sao Bernardo do Campo, eliminating 2,700 jobs.