South America woes cut VW's profits in region.

Automotive News Europe,  July, 2002  by Weernink, Wim Oude

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Argentina's economic crisis and Brazil's weakening currency are putting severe pressure on Volkswagen's profitability in the region.

The German carmaker formed four regional divisions in a 2001 reorganization: the European Union; North America; South America and South Africa; and Asia Pacific.

Brazil is the key market in VW's South America and South Africa unit with 2001 revenue of about 5 billion out of a divisional total of 6.7 billion. Mexico is included in North American operations.

"But our revenue figure may change overnight if the Brazilian real falls ...

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