Volvo to invest $283 million in Brazil by 2025

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FILE PHOTO: IAA truck show in Hanover

SAO PAULO – Volvo’s Brazilian unit announced on Wednesday that it will invest 1.5 billion reais ($283.36 million) in the country by 2025, after reporting record truck sales last year.

The figure will be directed mainly to research and development of products and services, said the Swedish company.

In 2021, Volvo sold 21,800 trucks in Brazil, up 45.7% over the previous year. The Brazilian truck market recorded 43.5% growth in the period to 128,700 vehicles.

“Brazil maintained its position as Volvo’s second largest truck market in the world, even at a time of limitations due to the pandemic and supply chain constraints,” said the group’s president for Latin America, Wilson Lirmann.

For 2022, the company has a positive forecast, “but challenges in the production chain, both in capacity and cost increases, will require attention throughout the year,” said Lirmann.

($1 = 5.2936 reais)

(Reporting by Alberto Alerigi Jr.; Writing by Peter Frontini; Editing by Nick Zieminski)