Volkswagen AG (VOW.XE) said Saturday it will invest EUR560 million ($653.21 million) at its Pacheco plant in Argentina over the next five years.
The German car maker said a new sports-utility vehicle will be built at the plant, and it expects the new project to create around 2,500 jobs.
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Parts of the investment will go into modernizing the plant.
The site will deliver the first models to the South American market in 2020, Volkswagen said.
"We will be underpinning our positioning at the top of the volume segments and winning further market share with new models from Volkswagen tailored to the wishes of customers in the markets," Dr. Herbert Diess, chief executive officer of the Volkswagen brand, said.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
November 13, 2017 01:54 ET (06:54 GMT)