Volkswagen May Invest $260 million In Brazilian Parts Plant

BUENOS AIRES German automobile manufacturer Volkswagen may invest $260 million to boost output at an automobile transmission parts plant in Argentina's Cordoba province, according to El Cronista newspaper. The plant would produce 200 transmission systems a day for Argentine and Brazilian markets and would create 2,000 new jobs, Volkswagen executives said. Hector Merens, general manager of the Cordoba plant, says Volkswagen would likely make the investment and that the company had met with Cordoba Gov. Jose Manuel de la Sota and Production Minister Juan Schiaretti to discuss Argentine tax, labor, and import laws. A spokesman for de la Sota's office says the government is willing to cut local taxes to make the project a reality. The Cordoba Governor had traveled to Germany in the past to convince Volkswagen executives to invest in the Cordoba province.