German automaker Daimler is planning to invest about $170m at its Centro Industrial Juan Manuel Fangio plant in Buenos Aires, Argentina, over the next two to three years.
The investments are aimed at developing new commercial vehicle models for the Latin American market as well as creating 850 new jobs that will increase the plant's workforce by 40%.
Daimler CEO Dieter Zetsche said that the investment will prepare the facility for the production of new bus, truck, and van models.
"Because Argentina has demonstrated robust economic growth in recent years, it will remain a very promising market for us,"Zetsche said.
"At the same time, Mercedes-Benz Argentina and the Centro Industrial Juan Manuel Fangio plant are important elements of our global production network."
With the investment, the automaker will build a series of new Mercedes-Benz brand commercial vehicles in Argentina.
Vehicles to be built at the Buenos Aires plant will include a midsized van, the Atron 1624 and Atron 1634 trucks as well as the LO915, OF1722, and OH1518 bus chassis.
The German carmaker also operates two other facilities in Latin America for manufacturing trucks that include Juiz de Fora and Sao Bernardo do Campo in Brazil.
