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23 AD ASKS » MERCOSUL SEEN FROM EUROPE AutoData | September 2018 1 2 3 4 5 Disclousure/VW During his second visit to Brazil in the last nine months, Herbert Diess met a new entry car project that has been developed by the company’s engineering team in South America. The executive said he liked what he saw, although has not yet hit the hammer for its local production as he said. The CEO spent most of his few days in Brazil meeting with dealers, unions and, of course, the regional company’s board of directors. During a short break of little more than half an hour in his agenda he granted an interview to the Brazilian press. Check the main questions addressed to him. Herbert Diess, CEO of Volkswagen We expect a turnaround soon, we believe that we will be able to tie the numbers this year and return to profitability in 2019. Next year we will launch a new compact SUV, it will be the right vehicle for the Brazilian market, it will be the right vehicle for the region. The average age of the vehicles here in Brazil will decrease, so we have an optimistic scenario ahead. We have been losing money in the region since 2013. It is not even an agreement yet, we are exploring the potentialities. The main objective is in light commercial vehicles, which the rivals’ volume is larger in Europe. We have to electrify the vehicles in this segment, it’s very expensive, Ford is in a similar situation and that’s why we’re studying synergies. In the region, the impact should occur in Argentina, where we produce Amarok. Yes, I am very worried. We are one of the leaders in that market. There is a very large fluctuation there. But we trust the local government, and we are committed to them. Argentina is very important strategically speaking because we need to produce there to be able to export to Brazil and this way, import a bigger volume from Brazil to there. I think it’s the right direction. If we look rationally, it makes more sense to use natural gas instead of electricity even in Germany. Everything depends on regulations and other things. Overall I would say that electric cars make a lot of sense in countries that have renewable energy system. Are you worried about the situation in Argentina? What is your opinion about the biofuels in Brazil? And what about the VW financial results in South America? And the deal with Ford? I don’t think so because if you look from the CO2 point of view the flex fuel is a more rational solution from the economic point of view. The electric vehicles need a great infrastructure that does not exist here. Would a mass production of electric vehicles make sense in Brazil, then? By Leandro Alves