Volkswagen decided to invest 557 million dollar in one of its factories located in Brazil. Sao Paulo’s governor declared this news when he was visiting the Volkswagen firm in Germany. Sao Paulo is known as the main hub of car production in Brazil but during previous years its power in car production had reduced, encouraging Sao Paulo to declare new tax exemption plans to retain its top position in car industry. According to this new plan, all car producers that invest at least 200 million dollars at one of their factories in Sao Paulo or make 400 new jobs in this city, their VAT rates will be reduced till 25%. Hence Volkswagen welcomed this plan and is going to make 1000 new occupations in Sao Paulo.