Volkswagen Investing Big In Brazil Unit

Volkswagen AG plans to invest about $3 billion over five years in its Brazilian unit to increase production, build new plants and make alternative fuel engines, the German automaker said Friday.

Details were discussed during a meeting last week between Brazilian President Fernando Henrique Cardoso and Jose Ignacio Lopez de Arriortua, VW’s world purchasing and production director, the company’s press office said.

General Motors previously announced plans to invest about $2.45 billion in its Brazil operations over the next five years.

Volkswagen said it will use the $3 billion investment to double its annual output in Brazil from 500,000 vehicles to 1 million.

The company also will build a new truck factory there, and produce engines fueled by soybean and palm oil.