Volkswagen has announced a commitment to invest around €1 billion ($1.1 billion) over the next five years to strengthen its operations in South America, gearing them towards sustained profitability. In addition to local vehicle projects, the OEM will boost its digitalization and decarbonization efforts in the region. One of the ways Volkswagen will realize this goal is through the development of a research center for biofuels as a bridging technology.

Another regional target for Volkswagen comes in the form of a region-specific product portfolio. This will begin with the launch of the new compact car family for the entry-level segment in 2023. The first model in this range will be the Polo Track based on the OEM’s MQB platform which will be produced at the plant in Taubaté, Brazil. Volkswagen says that the new line-up will enable its Brazil arm to develop a fast-growing market segment efficiently at a high technological level. The MQB platform itself will also provide the automaker with development cost savings.

In addition to an expanded product portfolio, Volkswagen will also enhance the sustainability of its operations in Latin America. To do so, it will invest further into its existing Biofuels Research & Development Center located in Latin America.