2023-07-05 06:50:54 ET
Volkswagen ( OTCPK:VWAGY ) announced the brand aims to make significant gains in South America with a major product offensive. The German automaker plans to grow the Brazilian market by 40% by 2027. Before the end of 2023, the company is bringing its first fully electric models to Brazil - the Volkswagen ID.4. and the ID.
The overall Volkswagen brand focus will include 15 new electric and flex-fuel vehicle models being launched by 2025. Hybrid vehicle launches are anticipated to follow in the medium term. In total, the South American automotive market is expected to grow 11% a year until 2030, which makes it one of the fastest growing markets in the world.
The South America market is noted to be of strategic importance to Volkswagen. Executive Chairman of Volkswagen Group South America Alexander Seitz said the local team has achieved a turnaround and sustainably improved profitability and competitiveness. "The task now is to continue working on the cost position and at the same time implementing the product offensive," he noted. The launch of the best-selling ID.4 and the iconic ID. Buzz in the Brazilian market is expected to bring further momentum to the region.
Volkswagen's ( OTCPK:VLKAF ) global electric vehicle transformation continues to take shape. In June, the automaker formally introduced a new electric version of the VW Bus for North America and Europe. Volkswagen ( OTCPK:VLKAF ) plans to sell the retro-looking ID. Buzz in North America after 2024 to fill a void after a two-decade hiatus of the beach favorite. The fully electric ID. Buzz will feature an extra-long version that can seat up to seven passengers and include a larger 85 kilowatt hour battery to increase range. ID. Buzz vehicles will be produced at the main plant of Volkswagen Commercial Vehicles in Hanover. Of note, the extra length of the VW Bus due to the increase in the wheelbase creates room for a third row of seats, providing up to 2,469 liters of storage space. A new heat pump is noted to increase efficiency in the winter.
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Volkswagen targets South America for electric vehicle push