Tuesday, March 29, 2011

Market Volkswagen - Fiat in Brazil, gauntlet

Volkswagen has announced that it will increase its vehicle production in Brazil and launch new ones to go to fill the role of competitor to Fiat, a leader in the South American country. The Brazilian market is growing and Volkswagen has decided to try to climb the charts of the market in developing throwing a gauntlet to Fiat.

Volkswagen is renovating and expanding three plants on the territory of Brazil with the objective of increasing its sales by 40% over the next four years. Estimates of Volkswagen engineers say that sales of the Brazilian market, third behind China and Germany by 2016 will increase by 40% with the registration of 3,640,000 cars a year.

Currently, Fiat has a market share of 22.3%, while Volkswagen stands at 21.8%. The third place is occupied by General Motors with 18.2%. Fiat, meanwhile, has invested 6 billion euro in their country to reaffirm its leadership in Brazil. The South American market is very important for Fiat: just think that last year the house of the Lingotto has sold nearly 800 thousand cars by record revenues of 9.25 billion euro.

The challenge is launched by Volkswagen. You just have to wait for the next few years to see who will hold the leadership of vehicle sales in Brazil, where Fiat or the German.

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