Iveco will invest billions in Latin America over the next few years

Iveco, the fifth largest manufacturer of trucks and buses in Brazil, with a vehicle factory based in Sete Lagoas, in the state of Minas Gerais, announced last week that it intends to invest BRL 1 billion in Latin America by the year 2025. In the 25 years that Iveco has operated in the country, this is the largest investment plan ever made by the company.

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Of this amount, more than half will be spent to develop new products, including gas-powered vehicles, which are scheduled to start production in late 2022 or early 2023.

In Brazil, almost 7% of the truck market is owned by Iveco and the producer has the goal of reaching 10% ownership in the country.

With the aim of strengthening Iveco in the Latin American region, part of the amount earmarked for investments will be applied in the Argentine plant and in sales operations in other countries in the region.

Currently, Iveco has 2.500 employees, with XNUMX of them hired last year. In addition, the company is one of the few to operate in three work shifts in different sectors of the factory in Sete Lagoas. According to the president of Iveco, the company has been working close to the capacity limit and is evaluating alternatives to increase it, given that the market will continue to grow.

In 2021, Iveco grew by 120% in production compared to 2020, with a total of 22 vehicles produced in Brazil and Argentina. For 2022, the expectation is that this number will reach 30% according to Querichelli, but everything will depend on the availability of electronic components, which are scarce in the market.

Investment in gas vehicles

The first gas-powered vehicle to be produced in Brazil is a heavy-duty truck, that is, large. Investment in this type of vehicle is due to sales growth driven by the strength of the agribusiness, construction and E-commerce in the country.

“We already have a complete portfolio in Europe and we are going to bring the project here and make the necessary adaptations”, said Querichelli. In addition, gas buses are also targets of Iveco for the country.

The president also informed that electric vehicles are also targets for Iveco, but to be imported. Initially, importation by the Daily van is expected, but the date of arrival of these vehicles in Brazil has not yet been defined.

Iveco is investing in changes in its product portfolio and, in the past, recorded an increase of almost 70% in truck sales, in a market that grew 43,5%. In the bus sector, which only recorded a 0,9% improvement compared to 2020, Iveco's performance grew by 69%.