Volkswagen do Brasil has a history stretching back more than 65 years, during which the company has reached some impressive milestones: more than 23 million vehicles produced, more than 3.7 million vehicles exported, and total domestic sales in excess of 19 million units.
The company has three vehicle plants (Anchieta in São Bernardo do Campo; Taubaté, and São José dos Pinhais) and one engine plant (São Carlos). The company also has a widespread sales and distribution network, with more than 500 dealers.
Volkswagen has been investing R$7 billion in Brazil by 2020, primarily to support the development and launch of 20 new vehicles, 5 of which will be SUVs. It will be the greatest update of the Volkswagen product portfolio that has ever taken place in Brazil, focusing on customers who want not just sturdy and reliable vehicles, but also new design, technology, comfort and safety solutions. 12 models were already launched in Brazil between October 2017 and 2018: New Polo, Virtus, Amarok V6, Tiguan Allspace, Golf, Golf Variant, New Polo 1.6 AT, Virtus 1.6 AT, Gol AT, Voyage AT, New Jetta and T-Cross, which reaches the Brazilian market in April 2019.
The three highlight projects 2018
A NEW MOMENT FOR VOLKSWAGEN DO BRASIL
VWdB celebrated one year of the implementation of the ‘New Volkswagen’ strategy in October 2018. With an investment of BRL 7 billion, VW announced the biggest product offensive in Brazil ever: 20 new products up to 2020. 12 models were already launched in Brazil between October 2017 and February 2019: New Polo, Virtus, Amarok V6, Tiguan Allspace, Golf, Golf Variant, New Polo 1.6 AT, Virtus 1.6 AT, Gol AT, Voyage AT, New Jetta and the T-Cross.
As a result of the New Volkswagen strategy, Brazil is the first growing market of VW around the world in 2018, responding for 5% of VW global sales in 2018. Including Cars and Amarok, VWdB grew more than double of the market in 2018: 35% vs. 14%.
The brand has been increasing its market share in Brazil in 2018 in more than 2 p.p over the same period last year, being the highest evolution among the main carmakers in Brazil. VWdB left the 3rd place in sales in 2017 to achieve a 2nd solid position in 2018.
Products - VW has two models among the ten best-selling cars in Brazil in 2018: Gol (4th) and Polo (6th). Tiguan Allspace and Virtus are the 2nd best-selling models in SUV premium and Compact Sedans categories, respectively.
In 2018, VWdB production (433,712 units) increased 6.2% over 2017, while the production of the whole Brazilian automotive industry (light vehicles) rose 5.8%.
Responsible for approximately 20% of the exports from the Brazilian auto industry as a whole, VWdB exported 112,004 cars in 2018. From this total, 65,381 units were exported to Argentina. Today, VWdB exports to 16 markets: Argentina, México, Colombia, Chile, Peru, Paraguay, Uruguay, Bolívia, Ecuador, Curaçao, St. Maarten, Costa Rica, Guatemala, El Salvador, Honduras and Panamá.
Gol is the most exported car of VWdB in 2018: 35,620 units, followed by Saveiro (18,617), Polo (16,813), up! (15,807), Virtus (11,475), Voyage (10,119) and Fox (3,553). Volkswagen has a historical leadership of exports in Brazil, with more than 3.7 million cars exported to 147 countries. Gol is the most exported car of the Brazilian automotive industry ever, with almost 1.5 million units sent to other markets.
Highlights in 2018
In January, Volkswagen promoted the official launch of the Virtus sedan in Brazil in a futuristic and humanized space in the Pavilion of the Biennial, in Ibirapuera Park, in São Paulo. More than 120 journalists, around a thousand digital influencers and personalities, brand dealers, employees and the general public were able to get a closer look at the first global car built on the MQB Modular Strategy in the Country.
In March, Volkswagen celebrated 65 years of operation in Brazil and reached the milestone of 23 million vehicles produced since 1953. The Tiguan Allspace, first model of the SUV offensive in Brazil, was presented for the first time during the same event.
In April, the company announced a BRL 2 billion investment to develop and produce the SUV T-Cross in São José dos Pinhais. The amount is part of the BRL 7 billion to be invested in Brazil up to 2020.
In July, Volkswagen launched the Gol and Voyage with automatic transmission.
In November, Volkswagen presented, during the São Paulo International Motor Show, the DDX (Digital Dealer Experience). Brazil is the first market to implement this new way of selling cars, developed by VWdB, which counts with virtual reality and touch screen features. In the first phase of the Project, 10 dealers will offer the digital dealers concept in the beginning of 2019. A total of 30 digital dealers will be available in Latin America In the first quarter of 2019.
In December, Taubaté plant celebrated the milestone of 7 million vehicles produced in 40 years. The 7,000,000th million vehicle produced there was a Voyage 1.6l with automatic transmission, a sedan, just like the first car manufactured in the plant: a Passat, in December 1978.
T-CROSS WORLD PREMIÈRE
In an unprecedented global action, with hundreds of journalists, digital influencers and live broadcasting, VW unveiled in October 2018 the T-Cross simultaneously in three continents: Europe, Asia and South America, in Brazil.
The T-Cross is the first SUV manufactured by VW do Brasil, and comes to revolutionize its segment's standards. The T-Cross made in Brazil has changes in its design, more internal space and is higher than the European version, besides being a safe and connected model, full of technology.
The SUV market is the fastest growing in Brazil. The SUV sales in the country grew 22.1% in 2018 compared to 2017, as the automotive sales increased 10.6%. VW has already successfully launched the Tiguan Allspace and will have five SUVs in South America up to 2020.
The T-Cross is the result of a BRL 2 billion investment destined to its development and to the modernization of the São José dos Pinhais plant. The unit was expanded by 5,500 square meters and received 158 new tools and 239 robots. Besides this, its employees went through more than 40,000 hours of training to manufacture the T-Cross.
The T-Cross will reach the Brazilian market in April 2019. The model will be also exported to Latin American and other continents.
INVESTMENT ANNOUNCEMENT OF BRL 2 BILLION FOR THE PRODUCTION OF THE T-CROSS SUV
Volkswagen do Brasil announced in April 2018 the investment of BRL 2 billion for the development and production of the T-Cross SUV at São José dos Pinhais plant in Paraná. From this total, BRL 600 million are allocated to the development, testing and validation of the product and BRL 1.4 billion for the expansion and modernization of the plant. The model is the first SUV produced by the brand in Brazil. The amount is part of the company's investment plan in Brazil, which foresees BRL 7 billion by 2020. The T-Cross will be produced under the Modular Strategy MQB, which is the most modern production concept of the Volkswagen Group. The vehicles based on the MQB Modular Strategy provide the ultimate in design, innovation, high performance and safety.
Every three years, Volkswagen do Brasil reviews its materiality matrix in order to update the key topics of interest to stakeholders covered in this report. In late 2017 and early 2018, the company carried a new consult with stakeholder – by contacting representatives of the following priority stakeholder groups: individual and corporate customers, communities’ representatives, dealerships, companies in the automotive sector, employees from all four business units, Class Entities, vendors, government agencies, company executives, NGOs, and trade unions/associations. This process involved more than 40.000 consults.
A total of 19 topics were mapped, 10 of which were prioritized as the topics of greatest material relevance to both the company and its stakeholders. These topics include:
1. Customer satisfaction
2. Safety and quality of vehicles
3. Research and innovation
4. Ethical and transparent conduct
5. Human capital development
6. Employee health and safety
8. Sustainable supply chain
9. Suppliers relationship
The other 9 topics didn’t have the same relevance to stakeholders, but it will be managed by the company. These topics include:
11. Creation of employment and income
12. Recyclability and use of renewable raw materials
13. Performance and economic viability
14. Operational Eco-efficiency
15. Government relationship
16. Impact on municipalities with operations
18. Trade unions relationship
19. Social investment
VOLKSWAGEN VIRTUS IS THE MOST AWARDED CAR OF THE YEAR IN BRAZIL
Volkswagen Virtus was the most awarded car in Brazil in 2018. The model, designed specifically for the Brazilian market, has won more than 20 awards, including some of the most prestigious of the national press, such as The Car of the Year, by Autoesporte magazine, "Best Purchase" and "The Elected", by Quatro Rodas Magazine and The 'Best of the Year', by Jornal do Carro newspaper.
During the year, the sedan won 25 comparative tests beating its main competitors.
Virtus was rated ‘10’ in the reparability evaluation carried out by CESVI Brazil (Trial and Road Safety Institution). On a scale ranging from 10 to 60, the lowest score indicates less time and lower cost for the vehicle to be repaired. The sedan was also graded 5-stars for both adult and children protection by Latin NCAP (New Car Assessment Program).
TIGUAN ALLSPACE STARTS THE GREATEST OFFENSIVE OF BRAND SPORTS UTILITIES IN THE COUNTRY
The launch of Tiguan Allspace in 2018 marked the beginning of the biggest sports utility offensive in the history of Volkswagen do Brazil. The utility was the first of five SUVs to be launched in the Brazilian market by 2020.
In its first year of sales, the model conquered six awards, including the “Best Purchase 2018" award, by Quatro Rodas magazine, among all models sold in Brazil. Tiguan was also elected the “Which to Buy” in the Premium SUV category, by AutoEsporte Magazine and "The best of the year" in the Medium SUV category, by Jornal do Carro.
AMAROK V6 IS THE MOST POWERFUL PICAPE OF THE BRAZILIAN MARKET
Besides being the pick-up truck with the most safety, innovation and connectivity features of its segment in Brazil, Volkswagen Amarok also became the most powerful model in its category with the introduction of the V6 Highline version with 3.0 V6 TDI (turbodiesel) engine.
The model also won 7 awards in 2018, such as the “Best Pick-up 2019”, by Car Magazine.
NEW VW IS RECOGNIZED AND AWARDED IN 2018
In 2018 the New VW strategy - more agile, close to people and innovative - focused on the biggest product offensive of its history in the Country, with investments of BRL 7 billion in the development and launch of 20 new vehicles by 2020 placed Volkswagen Brazil in the leading role of the automotive industry.
The company received several awards and recognitions during the year, such as:
- 1st Carmaker in the Ranking of Companies with Best Reputation in Brazil, carried out by Merco;
- Líderes do Brasil Award, from LIDE (Business Leaders Group) in the category "Automobile Industry"
- "Company of the Year" and winner of the "Exporter" category in the Autodata Award
- "Top of Mind" Award in the "Car" category for the 27th time
- "Companies that Best Communicate with Journalists" Award, in the "Automotive" category for the eighth consecutive year
- The "Nova Volkswagen" communication case won the "Brand Communication" category of the Aberje Award, promoted by the Brazilian Business Communication Association (Aberje)