German truckmaker Daimler Trucks has announced plans to invest BRL1bn ($458.6m) in commercial vehicle plants of its Brazilian subsidiary Mercedes-Benz do Brasil in the next two years.
The investment will used in the research and development of new products and technologies; as well as in process optimization and modernization of the two production plants Sao Bernardo do Campo (Federal State Sao Paulo) and Juiz de Fora (Federal State Minas Gerais).
This move is part of the Mercedes-Benz do Brasil's extensive investment project, which aims to invest BRL2.5bn ($1.146bn) across a six-year term extending from 2010 to 2015.
To date, the company has invested BRL1.5bn ($687.9m) in the production of trucks, buses and components at the Brazilian locations.
Mercedes-Benz Trucks Europe and Latin America head Stefan Buchner said that they have faith in the further growth potential of Brazilian market.
"Therefore, we will continue to invest in new products and state-of-the-art production facilities here," Buchner added.
Mercedes-Benz do Brasil CEO Philipp Schiemer said that with a total volume of BRL2.5bn and a term of six years, they have put together an extensive investment package.
"These investments will increase the competitive power of our company on this competitive commercial vehicles market," Schiemer added.
Earlier this month, the German automaker announced that it will build a new production plant in Iracemápolis, Sao Paulo, Brazil, to manufacture Mercedes-Benz cars for the local market. The company has signed a framework contract with Brazilian President Dilma Rousseff for establishing the plant. It plans to invest €170m in the plant during the first phase.
The plant will produce the company's next-generation C-Class and GLA vehicles with the first production planned in 2016.
Image: Mercedes-Benz Trucks Europe and Latin America head Stefan Buchner has announced the investment plans in Sao Paulo. Photo courtesy: Daimler AG.
