Volkswagen to invest $580 million in Argentina, plots new pick-up truck for South America

The Volkswagen brand is putting its global future plan into action. With an investment of US$ 580 million (Rs 4,831 crore) in Argentina, VW is paving the way for the next generation of midsize pick-up truck as a successor to the Amarok. The new model will be produced at the Pacheco plant in Argentina from 2027.

The next-gen midsize pick-up truck is being developed specifically for the South American market and will strengthen the strategically important pick-up segment in this region. The brand’s goal is to be the global technology leader among volume manufacturers by 2030. A key component of this will be expanding the brand’s position in regional markets and developing market-specific product solutions.

Announcing the investment plan on April 3, 2025, Thomas Schafer, CEO of the Volkswagen brand and Head of the Brand Group Core, said: “Regional growth and localisation are important elements of our global plan for the future. “This investment strengthens our position in a region that is strategically important for the Volkswagen brand. The new Amarok will be developed, designed and produced in South America, for South America. This means that it will be perfectly aligned with the specific needs of our customers in this market.”

While the new Amarok will be developed in South America and produced for the local markets, the existing partnerships for the production of the Amarok in South Africa will remain in place. In this way, Volkswagen will continue to ensure a reliable supply of vehicles to international markets – while simultaneously pursuing a locally based product strategy tailored to the needs of the Latin American market.

Alexander Seitz, CEO of Volkswagen Latin America, commented: “Argentina is a key component of our South American strategy. This investment underlines our confidence in the country’s industrial capabilities. The new Amarok sets new standards in terms of performance, innovation and sustainability.”

Marcellus Puig, President and CEO of Volkswagen Argentina, added: “The Amarok has been a symbol of Volkswagen's strength in Argentina. It is a key element of the brand's history in the country, an essential part of our present, and will continue to be so in the future. This new model will combine Volkswagen's design and DNA — backed by 15 years of experience and more than 770,000 Amarok’s proudly produced at our Pacheco plant — with cutting-edge software and advanced technology, resulting in a disruptive and competitive product for the modern market.”

New prospects for the Pacheco site
The investments in the Pacheco plant, which has already produced more than 770,000 examples of the Amarok, will be geared specifically to the requirements of the new model generation. Volkswagen states that it is introducing new production technology, optimising digital processes and increasing energy efficiency at the Argentinian plant.