Daimler AG (DAI.XE) said Tuesday it plans to invest around 600 million euros ($704.4 million) in its Brazilian commercial-vehicle business in anticipation of a market resurgence.
Although the Brazil market remains weak, Daimler wants to be prepared for the crisis-struck country's economic recovery, said Martin Daum, a Daimler board member responsible for trucks and buses.
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"Almost half of all commercial vehicles on Brazil's streets are older than 20 years. These vehicles must be replaced. We will be ready when the market comes back," Mr. Daum said.
The German car company said the investment will go toward modernizing its product lineup, digital services and increasing the efficiency of its two biggest production plants in Brazil: at Sao Bernardo do Campo and Juiz de Fora.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
October 10, 2017 09:23 ET (13:23 GMT)