Workers assemble different VW cars at the Volkswagen plant in General Pacheco near Buenos Aires (Argentina). (picture alliance/dpa)
Germany's Volkswagen Group is to invest around 800 million U.S. dollars in Argentina, spending most of the money in developing a new SUV for the Latin American market, the company said on Monday.
Of the total, 650 million U.S. dollars will go into VW's Pacheco plant near Buenos Aires, where the Tarek SUV will be built.
The announcement followed a meeting in Berlin between two VW representatives - executive board member Andreas Tostmann and Latin American chief Pablo Di Si - and Argentine President Alberto Fernandez.
VW is to invest a further 150 million U.S. dollars in producing a new gearbox for the European market at its plant in Cordoba in central Argentina.
Fernandez is currently in Berlin for a meeting with Chancellor Angela Merkel. In office since mid-December, his government is facing an economic crisis, with high state debt and inflation.
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