Published by Global Banking & Finance Review®
Posted on October 31, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleVolkswagen secures $426M from BNDES to boost hybrid vehicle development in Brazil, aiming for hybrid models by 2026.
SAO PAULO (Reuters) -Volkswagen said on Friday it has secured 2.3 billion reais ($425.62 million) in credit lines from Brazil's state development bank BNDES to boost the development of hybrid vehicles and expand exports from its Brazilian operations.
The company said that the funds will be used to support its plan to offer hybrid versions of all new vehicles developed and manufactured in South America starting in 2026.
"We will offer hybrids in every possible category: mild hybrids, hybrids, and plug-in hybrids," said Ciro Possobom, Volkswagen's head in Brazil. The automaker expects to invest 20 billion reais in South America by 2028.
($1 = 5.4039 reais)
(Reporting by Alberto Alerigi Jr.; Writing by Gabriel Araujo)
A credit line is a preset borrowing limit that a bank extends to a borrower, allowing them to withdraw funds as needed up to that limit.
Hybrid vehicles are cars that use two or more types of power, typically combining an internal combustion engine with an electric motor to improve fuel efficiency.
Sustainable development refers to organizing society in a way that meets present needs without compromising the ability of future generations to meet their own needs.
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