The Brazilian subsidiary of Mercedes-Benz, a local leader in trucks and buses, announced on Tuesday an investment of 1.4 billion reais (US $338 million) to launch a new line of trucks, betting that the domestic market will grow in 2020, including If exports fall.
“Argentina is our largest export market and has shown signs of recovery in the last two months, but it will fall again, that is clear,” said Philipp Schiemer, president of Mercedes Benz in Brazil and Latin America.
The investment is part of an already announced package, which should add 2.4 billion reais (US $ 580 million) by 2022.
Schiemer told reporters at the Mercedes Benz plant in Sao Bernardo do Campo that truck and bus exports made in Brazil now represent less than 30% of its production, while at its peak they represented “almost 50%.”
Brazil has not fully recovered from the worst recession in a century between 2015 and 2016. Analysts agree that GDP will grow less than 1% in 2019.
“Brazil is poorer today than in 2012 and 2013,” said Schiemer.
Mercedes Benz also said it sold 500 trucks to Ambev and 1,600 buses to the city of Sao Paulo.
The company added that they will start a second shift in his bus production line to meet demand.