Volks prioritizes increase of capacity in Brazil
Valor Econômico
After one year of record sales in the country and already operating near the installed capacity, Volkswagen do Brasil will direct most of the investments foreseen for 2010 in the expansion of its plants. For the year, it is expected that the domestic sales grow between 1 and 2 percentage points above the evolution of the market, which can result in a growth of up to 8% for the company. According to the President of Volks, Thomas Schmall, the maker will aim 60% of the investments foreseen at the increase of the manufacturing park and the difference will be invested in the launching of cars - the forecast is the launching of 13 vehicles in the year, the first one of which in February.
Nonetheless, there is still no definition about the manufacturing plants that may be expanded. According to the Executive, negotiations with trade unions, which are underway, will influence the decision, as well as the productivity and the capacity of the suppliers of parts to keep up with the growth. "We have plans for Taubaté (SP) and São Bernardo do Campo (SP). But the plan will be wrapped up in the coming weeks and we will only invest if it is competitive", he said.
The distribution of the funds that will be invested this year differs from that foreseen for the package of investments until 2014. Until then, the maker intends to invest R$ 6.2 billion (US$ 3.6 billion) in the country, 60% of which in the launching of vehicles. According to Schmall, 36% of the investment should be financed by the National Development Bank (BNDES), 40% will come from direct investment of the headquarters and the rest will be raised with other sources. The Executive has not disclosed the value that should be disbursed in 2010, but he said the maker foresees investing another R$ 20 million (US$ 11.6 million) to qualify the suppliers.
According to the Executive, choosing the plants that will receive the investments depends on the outcome of the negotiations in progress with the trade unions, in relation to benefits and parameters for the salary campaign. Schmall also pointed out that the plant of São José dos Pinhaes (PR), the newest one of the company, should receive investments, but smaller than those foreseen for the manufacturing units of São Paulo.