Greater freedom for the regions

The new Virtus. A Volkswagen made in South America for South America.

Volkswagens are a familiar sight on roads all over the world. But just like food or literature, regional tastes vary quite significantly. That is why it is so important to deliver models exactly tailored to the needs, preferences and pocketbooks of people in a particular country. And it is why you will see the Volkswagen Saveiro in Brazil, for example, or the Santana in China – both are bestsellers, although they are unknown in Europe.

Loved in South America, unknown in Europe: The Volkswagen Saveiro.

Gearing up for the future with tailor-made models
In future, we will be seeing even more of these differences in the product portfolio. After all, a key element of Volkswagen's "Transform 2025+" strategy is to strengthen the regions. The most recent achievement is the Volkswagen Virtus, which will make its debut in Brazil very soon. The sedan was developed in the country and will also be built in there.

Home of the new Virtus and workplace for about 8,800 Brazilian Volkswagen workers: The factory in Anchieta. Opened in 1957.

It is designed exclusively to suit the tastes of South American customers. So the Virtus is an important building block in the carmaker's plans for growth. According to brand CEO Herbert Diess, "we are gearing Volkswagen up for the future and South America has a key role to play." Diess believes there is enormous potential for Volkswagen in the region where the largest markets are Brazil and Argentina. And the brand intends to leverage that potential even more effectively going forward with tailor-made models like the Virtus.

Brazil: Volkswagen deliveries 17 percent up on the previous year
In Brazil, Volkswagen is the third largest carmaker with a share of just under 13 percent. 221,000 passenger cars had been delivered in the country by the end of October, 17 percent more than the previous year. The market is back in growth mode after the economic crisis, and the Virtus will bring further momentum in these favorable conditions.

The company will be investing some €1.8 billion in Brazil up to 2020. 20 new models are to be developed there, and 13 of them will also be built at Volkswagen's four plants in the country. The Virtus is following in the footsteps of the new Polo and is the already the second model in this product offensive.

The Brazilian Polo has its own unique front design.

Both are based on the "MQB", the Modular Transverse Toolkit platform. So they represent state-of-the-art Volkswagen technology.

The next "home-grown" products for South America will be an SUV and a pick-up: decisions on design and equipment are being taken by the local Volkswagen management team. Under the organizational realignment, the region has been given significantly greater independence so that these regional ideas have a greater say at HQ in Wolfsburg. Consequently, local management now has much more extensive decision-making flexibility, along with greater entrepreneurial responsibility. As the Board Member for Sales, Jürgen Stackmann, explains: "Our local colleagues know best what the markets want." Volkswagen is bringing further momentum to its South America strategy.

Argentina: Outperforming market growth
The big changes in the region are also having a direct effect at dealers. Volkswagen has been the market leader in Argentina for 14 years, and the Gol is the country's bestselling model.

The Gol is the best-selling car in Argentina.

The car market in Argentina is booming, too: so far this year, Volkswagen has already delivered 122,000 passenger cars, a rise of 31 percent, outperforming even the high market growth rate.

The CrossFox is only on sale in South America.

Now, Volkswagen is shifting up yet another gear: Herbert Diess has just announced investment plans totaling €650 million at a meeting with the President of Argentina, Mauricio Macri.

Volkswagen invests 560 Mio. Euro in the Argentinian site of Pacheco (from left to right): Hernán Vázquez, CEO Volkswagen Argentinia, Volkswagen CEO, Dr. Herbert Diess, Govenor María Vidal, President of Argentina, Mauricio Macri and Pablo Di Si, CEO Volkswagen South American region, announce the investments at Pacheco factory.

The two VW plants will be equipped with state-of-the-art technology. In future, they too will build cars based on the MQB platform. These modernized plants will be more flexible than they are today – that is a prerequisite for starting production of a tailor-made SUV at the Pacheco factory soon.

Pacheco factory employs around 4,100 people.

Volkswagen will be investing around €560 million in Pacheco alone over the next five years. The factory will then supply the new model to the entire South American continent from 2020. The sporty offroader will create some 2,500 jobs. It will be the first vehicle of its kind ever to hit South American roads.