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.’
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.
Excellence in Action Continental has secured the Window Displays Innovation Awardin the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.
