Volkswagen increases investment in São Carlos
Valor Econômico - 11/28/2007
Volkswagen has decided to increase the volume of investments for the São Carlos operation, in the countryside of São Paulo, in more than R$ 43 million (US$ 24.7 million) until next year. This unit produces engines for light vehicles and supplies all plants of the maker in Brazil and Argentina. The resources will be used until September/2008 in the purchase of more machines. With that, the daily production, which is currently 1.8 thousand engines for cars and light commercial vehicles, may reach 2.7 thousand units in 10 months. The new investment adds up to the R$ 80 million (US$ 46 million) announced in the beginning of this year for that plant. With the R$ 80 million (US$ 46 million) that had been initially defined the company had already decided for the construction of two other buildings. One of the buildings, with an area of 3 thousand square meters, will be used to shelter a new machining area. The other, with 5 thousand square meters of area, will shelter the logistics operations that will be moved in order to make room for new production lines. Built 11 years ago to concentrate the production of engines of Brazil's largest carmaker, the São Carlos plant is running at three shifts, without any more flexibility options. Currently, the unit has 510 employees and will open 200 other job positions until September/2008. The São Carlos productive capacity has doubled in four years. Today, 550 thousand engines are produced annually, from which 15% to 16% are exported.