October 21, 2013 / 5:57 PM / 4 years ago

Daimler plans investments in Brazil after truck order

SAO PAULO (Reuters) - German automaker Daimler AG (DAIGn.DE) is preparing a two-year investment plan for commercial vehicle production in Brazil after winning an order for 2,884 heavy trucks from the agricultural development ministry on Monday.

The Mercedes Benz bus and trucks division will announce its investments for 2014 and 2015 on Sunday, a spokeswoman said after the announcement of the latest order.

The deal, coming after 1.2 billion reais ($552 million) of public orders in Brazil for Volkswagen’s (VOWG_p.DE) bus and heavy truck unit, MAN SE (MANG.DE), highlights how public spending is driving a rebound in Brazilian truck output.

Bus and heavy truck production in Brazil jumped nearly 50 percent through September this year from the same period of 2012 as tax perks and government purchases revived the sector from the impact of new emissions rules at the end of last year.

    Already this month, Daimler announced plans to invest about $230 million in a new luxury car plant making up to 20,000 Mercedes-Benz C-Class and GLA vehicles annually.

    ($1 = 2.17 Brazilian reais)

    Reporting by Alberto Alerigi Jr. and Brad Haynes; Additional reporting by Frankfurt Newsroom; Editing by Grant McCool

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below