Volvo to invest R$ 1.5 billion in Brazil

This Wednesday, February 2nd, Volvo announced a new investment plan totaling R$ 1.5 billion to be disbursed between 2022 and 2025. The company will allocate the resources mainly to develop new trucks and buses produced at the Curitiba factory, including electric trucks and buses at the final investment stage.

The company will also allocate funds to develop modern engines designed to meet the new emissions rule, called Euro 6, which will come into force in January 2026. The previous investment program included part of these funds, which totaled R$1 billion from 2020 to 2022.

According to the president of the Volvo group in Latin America, Wilson Lirmann, Volvo will also redirect funds to the digitalization and connection of services.

Lirman says that the Brazilian operation is competing for investments with six others spread around the globe. Despite the unstable economic environment that hampers growth, according to him, the robustness of the Latin American market justifies investments in the region.

Volvo, the market leader for trucks with a capacity of more than 14 tons, had the best year in its history in Brazil in 2021, which began nearly 42 years ago with the construction of the factory in Curitiba. Compared to 2020, the brand grew by 45.7% last year (21,800 units).

Projections for 2022

According to Lirmann, the Brazilian truck market will grow 10% by 2022, despite supply chain constraints and factors that inhibit demand, such as rising interest rates.

The company has expanded its operations in the truck market thanks to foreign transactions. Two-thirds of the 1,180 urban and road chassis, heavy and semi-heavy, sold last year went to Latin America and several African countries.

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