(RTTNews) - German carmaker Volkswagen AG (VLKAF.PK: News ) said Friday that it will invest a total of 2.3 billion euros in Brazil for plant expansion and in new products, between 2009 and 2014. The company's target is to sell one million vehicles per year in Brazil by 2014 and noted that it will continue to pursue its growth course in Brazil over the coming years.

Volkswagen sees Brazil as a market with high growth potential and is the Group's third largest market after China and Germany. According to the company, it intends to develop new products in the Brazilian market as well as to expand capacity in Anchietá, Taubaté and the engine plant in São Carlos.

Thomas Schmall, chief executive officer, Volkswagen do Brasil said, "We will enjoy significant growth in Brazil this year and win market share. Our target is to sell one million vehicles per year in Brazil by 2014, thus making an important contribution to the success of the Group's Strategy 2018."

Volkswagen do Brasil has a daily production capacity of three thousand vehicles and has the largest dealer network, with 600 dealers located across the country, the company noted.

Also, Volkswagen said that deliveries to customers by Volkswagen do Brasil have risen by 70% since 2005 to 585,000 units in 2008 and local production comes to about 800,000 vehicles this year.

In addition, the Volkswagen brand is launching 26 product innovations in Brazil during this year and next year under its product initiative.

Martin Winterkorn, chairman of the board of management of Volkswagen Aktiengesellschaft said, "Brazil is one of our most important growth markets worldwide. We expect demand there to rise significantly over the coming years and we are now systematically adjusting our manufacturing capacity."

VLKAF.PK last traded on November 12 at $148 on the OTC.

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by RTT Staff Writer

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