Argentina/Brazil/Venezuela: Iveco to invest €220m to lift production capacity
By: Glenn Brooks, Monday, June 16, 2008, AutomotiveWorld.com
The announcement was made by Iveco's chief executive, Paolo Monferino, during an inauguration ceremony for the OEM's new Product Development Centre in Sete Lagoas, which was also attended by the governor of the state of Minas Gerais, Aecio Neves.
The €11m facility will adapt products from the Iveco range to Latin American markets and develop models specially tailored to local needs, the firm states. Iveco also plans to launch what it calls two new 'product families' a year in the 2008-2010 period.
"Latin America is one of the main cornerstones of Iveco's world growth, and this is why a significant part of the investment has been dedicated to increasing the production capacity of the Iveco factories in Brazil, Argentina and Venezuela, taking it up to 48,000 units/year overall, as from the start of 2009," Monferino stated as he opened the development centre.
Iveco currently assembles its entire range of commercial vehicles at a plant in Sete Lagoas, while a new factory is being built on the same site for medium and heavy range vehicles. The aim is for a doubling of current production to 60 units a day, starting from January 2009.
In Argentina, meanwhile, Iveco's Cordoba facility produces medium size vehicles (40 units/day) and supplies medium range components to the other Iveco production units in South America. Part of the new investment will be for increased production of doors, cabs and other sets of components at this site.
As for Venezuela, the OEM's La Victoria complex assembles the entire range of Iveco commercial vehicles from CKD kits sent from Argentina and Brazil. Commencing later this month, this factory's capacity will increase from 26 to 40 units a day, using an additional area of 60,000 sq.m, Iveco states.
In 2007, the Fiat Group subsidiary sold a record 17,500 units in Latin American markets. Sales were driven particularly by the Brazilian market (119% up on 2006), but with sustained growth rates also in Argentina (+24%) and Venezuela (+39%).
From 1 January to 31 May, sales increased by 36% (the equivalent of 8,500 units) compared to the same period of 2007, the company notes, with Brazil again leading the sales rise.
"We shall soon be a full-liner company in the entire region", Monferino adds, while also stating that the forthcoming new vehicles will be launched immediately after their introduction in Europe.
Published on Monday, June 16, 2008
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