BRAZIL - Audi confirms that production has begun at the new Curitiba plant with the A3 Saloon, then the Q3 later.

• Board of Management Member for Procurement Dr. Bernd Martens: “We will utilize the potential of high added value in Brazil”
• First Audi worldwide with flex-fuel engine
• Audi Q3 soon to also be produced in Curitiba

AUDI AG has started production in Curitiba in the Brazilian federal state of Parana. The latest of thirteen sites in the Audi production network is the first in South America.

“We see great potential in the Brazilian market. Our goal there is to maintain our leading position in the premium segment over the long term,” stated Dr. Bernd Martens, Board of Management Member for Procurement at AUDI AG. 

“On our global growth path, we will also utilize the potential of high added value in Brazil. So as well as the Audi A3 Sedan, we will soon also produce the Audi Q3 in Curitiba and will procure as many components as possible locally.”

The Audi A3 Sedan 1.4 TFSI Flex produced in Curitiba is the first Audi model with a flex-fuel engine. These engines can operate on gasoline, ethanol or both fuels at the same time. Brazil is the world’s biggest market for flex-fuel engines. 

More than 90 percent of cars newly registered are fitted with this technology. Audi will deliver to customers the first A3 models with the 1.4 TFSI flex-fuel engine in November 2015. 

“With local production of the Audi A3 Sedan and – a few months later – the Audi Q3, we will be ideally positioned to fulfill the wishes of our Brazilian customers” stated Jörg Hofmann, CEO of Audi do Brasil. “

Since the market launch of the A3 Sedan in 2014, we have doubled our sales volume in Brazil and are the market leader in this segment. This is a strong confirmation that we have chosen the right model for Curitiba.”

Audi is continuing along its path of international expansion with the plant in Brazil. In 2016, the brand with the Four Rings will open a second Audi plant in the Americas, in San José Chiapa, Mexico.

Renault reaffirms commitment to Brazil with further large investments.

• Investments of R$ 500 million (£133 million) from 2014 to 2019 will be allocated to the development of new vehicles in the Curitiba plant
• An additional R$ 240 million (£64 million) over the next 10 years will support the creation of a new distribution centre to supply Renault’s 275 outlets in Brazil and other markets.

Renault Group Chairman and Chief Executive Carlos Ghosn today announced a new investment cycle in Brazil in the amount of R$ 500 million (£133 million) over the 2014-2019 period. This investment will be channelled into the development of two new cars at Renault’s plant in Curitiba.  

“Since 2011, Brazil has been the brand’s second largest market after France and it is a priority in the Group’s global growth strategy”, says Carlos Ghosn. Renault Brazil successfully completed its previous investment plan and is now pursuing the ambition of expanding its domestic market share”.

Renault has now been producing in Brazil for fifteen years. With a market share of 6.7% at end-March, Renault is reaffirming its position as the fifth largest carmaker in the country. The Group is targeting an 8% market share by 2016.

Thanks to its previous investment plan of R$ 1.5 billion (£398 million), Renault strengthened its growth strategy in Brazil based on three pillars:

• Production capacity increase from 280,000 to 380,000 annual units at the Curitiba Ayrton Senna industrial complex
• Product range update with two brand-new models launched in 2013: Master and New Logan
• Dealership network expansion with 100 new stores opened in the last three years, totalling 275 sales outlets.

New national parts distribution centre

Renault also announced today the implementation of a new national parts distribution centre in the city of Quatro Barras – State of Paraná – with start of operations planned for the second half of 2015. This new centre represents an investment of R$ 240 million (£64 million) over the next 10 years and the creation of 250 jobs. Daily operations would include movement of 120 heavy-duty trucks.

In addition to meeting the needs of Renault dealerships nationwide, the new distribution centre will also supply parts and components to Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and France.