Daimler commits €600m to modernise Brazilian truck plants
Mercedes-Benz do Brasil will invest €600 million by 2022 to update production at São Bernardo do Campo and Juiz de Fora, focusing on new products and digitalisation.
Daimler has confirmed a €600 million investment plan for its Brazilian commercial vehicle operations, with funds allocated through 2022 to modernise products, digital services and production at its São Bernardo do Campo and Juiz de Fora plants. The move is aimed at preparing Mercedes-Benz do Brasil for an anticipated recovery in the Brazilian truck market and strengthening exports across Latin America and beyond.
Where the money is going
The investment will be used to update truck and bus models, expand digital services, and modernise production lines. São Bernardo do Campo, Daimler’s main Brazilian facility, received a new truck assembly line in 2018, incorporating Industry 4.0 principles such as real-time hyperconnectivity, automated guided vehicles and digital tools to boost efficiency. The company spent €125 million on this new line over the previous three years, with the larger €600 million programme extending these upgrades and supporting product renewal.
The Juiz de Fora plant in Minas Gerais will also benefit, with investment directed towards infrastructure and production improvements. Both plants are central to Mercedes-Benz do Brasil’s strategy to meet demand for new, more efficient commercial vehicles as the Brazilian fleet ages. According to Daimler, nearly half of all commercial vehicles on Brazil’s roads are more than 20 years old, creating a substantial replacement market as the economy recovers.
Exports and market performance
Mercedes-Benz do Brasil remains a key exporter of trucks and buses, supplying neighbouring Latin American countries and markets in the Middle East and North Africa. In 2017, the company exported 10,000 commercial vehicles, up 27% on the previous year. Truck exports grew by 42% to 6,000 units, while bus chassis exports rose 15% to 4,300 units. These figures underline the importance of the Brazilian plants as an export hub within Daimler’s global production network.
Domestically, Mercedes-Benz Trucks increased its share of the Brazilian market to 29.4% in 2017, a 0.7 percentage point rise year-on-year. Mercedes-Benz Vans also captured 32.9% of the large transporter segment, while Daimler Buses held a 49.1% share. Management sees the investment as critical to defending and growing these positions as the market rebounds from a prolonged downturn.
Context and previous investments
Daimler’s commitment to Brazil is not new. Since 2010, the company has invested over €1 billion in its Brazilian production sites. Earlier rounds included more than BRL 730 million between 2015 and 2018, and a separate €600 million programme announced in 2008 to expand capacity by 25% at São Bernardo do Campo. The current investment continues this strategy of long-term localisation and production network integration, as detailed in technical papers on Daimler’s global manufacturing approach.
The latest round of funding is intended to ensure Mercedes-Benz do Brasil can respond quickly to local and export demand, while introducing new technologies and digital services expected by fleet operators in Latin America and other emerging markets.
