Daimler plans commercial investment in Brazil image

The German automaker Daimler AG – through its Mercedes Benz bus and trucks division – is preparing a two-year investment plan for the start of commercial vehicle production in Brazil.

After securing an order for 2,884 heavy trucks from the agricultural development ministry on Monday, the Mercedes Benz bus and trucks division is now set to announce its investments for 2014 and 2015 on Sunday, according to a spokeswoman, commenting the commercial strategy after the announcement of the latest order.

The Mercedes Benz deal is also hot on the heels of another move in the sector – 1.2 billion reais ($552 million) worth of public orders in Brazil for Volkswagen’s bus and heavy truck unit, MAN SE – signaling a move towards public spending, aimed at driving a rebound in Brazilian truck output.

Bus and heavy truck production in Brazil climbed almost 50 percent through September this year from the same period of 2012 as tax incentives and government purchases revived the sector from the impact of new emissions rules at the end of last year. Earlier this month, Daimler also announced plans to invest about $230 million in a new luxury car manufacturing facility that would produce up to 20,000 Mercedes-Benz C-Class and GLA vehicles annually in the South American country.

Via Reuters