Struggling to regain market position in Brazil after seven years of losses, Volkswagen plans to introduce a new low-cost car for South America’s largest country within four years, Associated Press (AP) reported.
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The new car will be developed in Brazil and will appear in showrooms in 2006 or 2007, Volkswagen officials told AP on Thursday.
While Volkswagen’s subcompact Gol is the top-selling car in Brazil, the company wants to regain its position as the country’s No. 1 car producer, the report said, noting that, after years as Brazil’s leading brand, Volkswagen is now third behind General Motors and Fiat.
Analysts told Associated Press Volkswagen should have revamped its line-up earlier, but fell behind after so many years as Brazil’s top car seller.
AP said that Volkswagen and other car makers invested heavily in Brazil during the 1990s, but a series of economic crises decimated sales while sales this year are expected to decline about 10% compared to last year, according to industry group Anfavea.
Volkswagen, which has posted losses in Brazil every year since 1997, announced a major restructuring of its operations in July, Associated Press added.
