Italian public transport operator Iveco and bus bodybuilder Larimar have partnered to form a new joint venture to build trucks and buses in South Africa.
Iveco said, the new joint venture will be named as Newco, in which the Italian transport operator will hold 60% stake.
Newco, which would be based in Pretoria, is expected to start the production in the second half of 2013 with the Eurocargo range.
In addition, the new plant is expected to deliver a production capacity of 7000 trucks and 1000 buses per year.
The new company will assemble light, medium and heavy duty commercial vehicles as well as front engine and low floor city buses.
Iveco South Africa will sell the new manufactured trucks through its existing distribution network, while Newco will directly distribute the new buses.
Iveco CEO Alfredo Altavilla said this joint venture is targeted to serve both the local market, as well as all the other neighbouring countries federated within the Southern African Customs Union.
"The Newco will leverage on the extensive product portfolio Iveco has available both in West Europe and in China," Altavilla said.
