German chancellor visits VW plant

German Chancellor Angela Merkel has visited Latin America's largest Volkswagen assembly plant. Later, she departed for Peru for a summit with her European and Latin American counterparts in Lima.

Merkel was greeted at the Sao Bernardo plant by Volkswagen Global president, Martin Winterkorn. The chancellor inaugurated a new virtual reality wing, which is the German company's largest design center. The 4.2 billion US dollar facility will apply new design techniques for various models.

During her visit, German and Brazilian officials signed an agreement that foresees a joint working group on the cultivation of bio-fuels.