* CEO announces expansion during visit to Brazil
* Brazil truck output down 40 pct in 2012 to date
SAO PAULO Oct 11 World No. 2 truck maker Volvo
AB will invest $500 million in Brazil over the next
three years to expand production, renewing and expanding its
truck lineup after a challenging year for the local market.
Chief Executive Olof Persson announced the investment on
Thursday during a visit to Brazil and Volvo's press office later
confirmed the details of the expansion.
The Volvo group currently has two plants in Brazil producing
trucks under the Volvo brand and plans to bring another one of
its global brands to the country with the new investment.
Production of heavy trucks in Brazil fell 40 percent through
September this year compared with the first nine months of 2011,
as struggling local industries and a shift in emissions
standards sapped demand for new trucks.
Weak sales and idling assembly lines led Volkswagen AG's
local MAN SE unit to put off investments
in a new truck factory.