Volkswagen do Brasil S.A. opens a truck and bus factory in Resende in the State of Rio de Janeiro with an annual capacity of 30,000 vehicles. On October 12, the new engine factory in São Carlos in the State of São Paulo begins production. The engine factories in Salzgitter and Chemnitz supply components. By establishing production facilities in Brazil and Argentina Volkswagen succeeds in closing a capacity gap in South America caused by the end of the cooperation with Ford. By the end of 1997, Volkswagen do Brasil has 31,000 employees. With a total production of 609,000 vehicles in this year, it still leads the market in passengers cars (32.6%) and light commercial vehicles (25.8%). In 2000, Volkswagen do Brasil is the first Brazilian car manufacturer to start exporting to the USA and Canada. More than 120,000 vehicles are exported.
Rio de Janeiro, Brazil