German car maker Volkswagen has confirmed that it will invest 2.3 billion euros in Brazil over the next five years. The money will be used to introduce new products and expand manufacturing capacity in gain market share in one of the world's fastest growing markets.

Volkswagen also plans to introduce 26 new car models in Brazil by the end of 2010, part of an effort to reach a target of 1 million vehicles sold per year by 2014. Whilst at the moment there is an estimated one car for each seven inhabitants, analysts predict that this will rise to one in four within five years.

"Brazil is one of our most important growth markets worldwide," said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft. "We expect demand there to rise significantly over the coming years."

Brazil's auto industry was one of the fastest to rebound following the economic crisis that has decimated sales in many other territories. According to the Anfavea, Brazil's National Association of Motor Vehicle Manufacturers, unit production in October 2009 was the second highest ever and employment in the sector has grown steadily for the past four consecutive months. Earlier this year, French car maker Renault announced that it was stepping up production in Brazil.

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