Volkswagen has announced plans to invest 520 million reais ($236 million) to develop a new model of its highly popular Golf compact, which will be manufactured in the southern Brazilian state of Parana.
Volkswagen do Brasil President Thomas Schmall made the announcement Thursday after meeting with Brazil’s head of state, Dilma Rousseff, to present the company’s plans.
The new Golf model will be manufactured at the multinational’s plant in the city of São Jose dos Pinhais and be sold in Brazil beginning in 2016 in 1.4 L, 1.6 L and 2.0 L versions, Schmall said.
The announcement follows shortly after Mercedes Benz and Audi unveiled big bets on Brazil’s promising auto market.
Mercedes said last week it would invest some $230 million to build a second plant in the southeastern state of Sao Paulo.
The luxury automaker’s factory will have a production capacity of 20,000 vehicles per year and begin operating in 2016.
Audi also has announced plans for a big push into Brazil’s luxury vehicle market, saying last month it would invest $500 million over the next two years to build a new assembly plant in Brazil.