In a Gazeta Mercantil report, Volkswagen's local boss said that he expects two carmakers to leave Brazil and Argentina within the next two years. Herbert Demel told the newspaper that he believes the market is insufficient to support the current number of assemblers, estimating 50% overcapacity.

He told Gazeta Mercantil: "We have a zoo with more beasts than meat to feed them."

He also insisted that Volkswagen is well-positioned in Mercosul, saying that it is 'one of the most solid companies in a market where automakers lost US$5 billion in the past four years.'