Volvo: R$ 1 billion in Latin America and 90% in Brazil

TV Jurerê
07:00:PM - 15/Feb/2017
Volvo: R$ 1 billion in Latin America and 90% in Brazil

15/02/2017 | 7PM

We are ready for the resumption.” It was with these words that the first Brazilian president of the Volvo Group for Latin America announced a new cycle of investment in the region. Wilson Lirmann said that the input of R$ 1 billion will be applied between 2017 and 2019 and will focus on the development of new products, the upgrading of the truck and bus plant in Curitiba (PR), and an increase in services.

Most of the investment, about 90%, will be in Brazil, the executive said during an annual meeting with the Brazilian press to announce the balance of 2016, held on Tuesday (14), in São Paulo.

"The idea is to complement the supply [of products] and stay ahead", reinforces Lirmann.

He explains that the new cycle will sustain the company's goal to remain a leader in the market in which it operates - trucks above 16 tons, the so-called heavy vehicles - whose brand share reached 28.8% in 2016, its third consecutive year ahead on this segment. Last year, total sales of these models in the Brazilian market stood at 29.6 thousand units, a drop of almost 30% over 2015.

The group's last investment cycle in Latin America was equivalent to US$ 500 million in the period between 2013 and 2015, which included the last major renewal of the truck line, with the new generation of the F-Line models, launched in 2014.

The year 2017 should not be so good, predicts Volvo. Although on a still negative basis, the market should return to the growth curve in this cycle. "We should stay between stability and growth of up to 10% or even more than that," estimates Lirmann.