(AP) -- FRANKFURT - Germany's Volkswagen AG has announced plans to invest euro2.3 billion ($3.5 billion) in Brazil and said it hopes to be building a million vehicles a year in the country by 2014. Volkswagen says the planned investment through 2014 is aimed at increasing production capacity and developing new models. It expects to produce some 800,000 vehicles in the South American country this year.
VW, based in Wolfsburg and Europe's biggest auto maker, says it will expand production capacity at its Anchieta and Taubate vehicle production plants and at an engine plant in Sao Carlos. Brazil is the company's third largest market after China and Germany.
Volkswagen says deliveries to Brazilian customers rose by 70 percent since 2005.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)
