Wednesday, January 20, 2010

MAN To Up Truck And Bus Production For Expected Brazilian Infrastructure Boom

Sporting Events are likely to Spur Growth
Shipping News Feature

MUNICH – GERMANY – Following the announcement last week that they were forming a new company together with Rheinmetall, the German military machine manufacturer, called Rheinmetall MAN Military Vehicles GmbH, for the production of wheeled military trucks, and the report last month on their tie up with Force Motors in India it seems MAN are now to expand their production in Brazil by around 30% anticipating a big rise in truck and bus sales over the next few months. MAN bought up Volkswagen's Brazilian heavy truck production facilities in December 2008 for around €1.2 billion (the two company’s complex financial arrangements have been discussed here before) and now the Resende plant is being asked to turn out over 70,000 trucks annually, many still to be marketed under the VW brand.

MAN will commence production of their own TGX and TGS heavy trucks before the year is out and the company’s move mimics that of Daimler who have stated that they are to step up heavy truck production at their Sao Bernardo do Campo facility and just last week announced they had received around $700 million in low interest financing from Brazil's National Development Bank (BNDES) to build up production at the Mercedes badged plant. The Daimler group are the worlds largest producer of heavy trucks whilst MAN are third largest.

Both the companies are confident they are making the right moves at the right time. As Brazil builds up its infrastructure with half an eye on the FIFA World Cup in 2014 and the Olympics, due to take place in 2016. For any country two events like these would produce a review and revision of its transport system but for Brazil, monarch of the soccer world, the nation will want to ensure they prove fitting hosts.