German automaker Volkswagen has received a BRL 151.8 million loan ($38.9 million) from Brazil’s development bank, BNDES, to modernize engine and auto production lines for both the domestic and export markets.
According the Brazilian bank, the financing is part of a Volkswagen’s already announced BRL 521.3 million investment for such programs.
BNDES said the automakers’ aim is to increase the competitiveness and the utilization of technology used in other countries in Brazil.
Volkswagen’s engine production line at its Sao Carlos plant, in the city of same name in the state of Sao Paulo, will receive BRL 58.6 million from BNDES, while the remaining BRL 93.2 million financing will be destined to the development of new car models.