Volkswagen will invest 1.5 bi R$ in trucks plant in Rio de Janeiro

São Paulo – the Volkswagen trucks and buses, MAN Latin America Group, will invest 1.5 billion R$ (420 million euros) at the plant of Resende (RJ) in the next five years. Is the second announcement by carmaker this week.
On Tuesday, Toyota said it will apply R$ 600 million to expand the production of engines at the factory of Porto Feliz (São Paulo).
According to a statement made on Thursday, first, by the President of the Volkswagen Truck & Bus, Andreas Reschler, first for President Michel Temer, in Brasilia, and later to journalists in São Paulo, the amount will be spent on new vehicles in the factory modernization, development of connectivity and services in the expansion of the brand in the international market.
Despite the crisis that brought down the total sales of trucks and buses in 31% this year before 2015, and led companies to operate with less than 30% of the productive capacity, this is the biggest five-year programme announced by the company since 1994, when he began to build the factory with innovative modular system vendors operating in the same premises. In the last four programs were applied R $1 billion.
"We are convinced that the market will react and this reaction has already begun," said Reschler, who in the last 18 months visited Brazil three times. He said he had noticed that last year, there was a lot of pessimism in the country. "But this year I see more optimism in the political side."
Three weeks ago, during the auto show in São Paulo, Volkswagen also announced investments of r $7 billion by 2020 for the area. "These investments are a statement that automakers believe the recovery of the brazilian economy," said Marcelo Cioffi, PricewaterhouseCoopers (PwC).
Cioffi pointed out that investing in new technologies and products is important to the brand remain competitive on the market, because the competition is fierce and innovations can always generate new demands. "In addition, when this cycle of low end certainly will come out in front who are better positioned in terms of products and technologies that enchant the consumer".
Reschler stated that the brazilian subsidiary today have greater role to the group that in the past, because many of the locally manufactured products have the potential to be sold in other markets. The MAN exports of 15% to 20% of its production and the goal is to increase to 30% to 35% in three years.
In conversation with Fear on this farm, the President of MAN Latin America, Roberto Cortes, said no tax incentives were requested. "We suggest greater availability of credit for export, expanding the participation of Finame in financing and progress of the fleet renewal program".
Idleness
Second cuts, the Resende plant is suitable for the size of the Brazilian market, which is expected to consume this year heavy vehicle 59000, 72% in 2011, height of segment. "With this volume we''re going back to the last century, when sell 61000 vehicles in 1999."
In 2011, the plant produced 350 vehicles a day, 80 today. The staff, including suppliers, down from 3500 to 6000. They work four days a week for participating in the employment protection program (EPP), which reduces journey and salaries and whose contract has been renewed for an additional year (until end of 2017).
The brand, which in the last 13 years has been the market leader for trucks this year loses the position for Mercedes-Benz.
Although optimistic about the recovery of the brazilian economy, the German Reschler was shown to be concerned about the political crisis and suggested that if the country adopt the system used in Germany, in which members, to be elected, "need to have minimum requirements".