Fabio Ferraresi
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Daimler Truck Launches Zárate Plant

Fabio Ferraresi Daimler Truck inaugurated a new US$110 million industrial complex in Zárate, Buenos Aires Province, Argentina, reinforcing its long term manufacturing strategy in South America. The facility will produce Mercedes-Benz Atego and Accelo trucks alongside OH and OF bus chassis, while also integrating a logistics center and Argentina’s first remanufacturing operation dedicated to commercial vehicle spare parts. The plant replaces part of the former Virrey del Pino operations and is expected to support both domestic demand and export activities across Latin America.
The project represents the first greenfield automotive manufacturing investment in Argentina in approximately 15 years and follows the operational separation of Daimler Truck from Mercedes-Benz Group in 2021. According to company statements, the site is designed to improve logistics efficiency due to its proximity to port infrastructure and to increase production scalability. Installed annual production capacity may reach approximately 10,000 units.
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EU–Mercosur Pact May Reshape SA MHV Industry
The European Union and Mercosur trade agreement started in May 1st and it is expected to affect the competitive landscape of the truck and bus industry in South America, particularly in Brazil and Argentina. The gradual reduction of tariffs and expanded market access could increase the presence of European commercial vehicle technologies and components in the region.
The agreement may lower import costs for trucks, buses, engines, and advanced systems from Europe, potentially accelerating fleet modernization…
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Yanmar Announces $55.77 million Plant in Brazil
Yanmar has announced an investment of approximately $55.77 million USD (R$280 million) to build a new manufacturing facility in Indaiatuba, São Paulo State, Brazil. The project is designed to expand the company’s industrial capacity in the country and support growth in the agricultural machinery and compact equipment segments.
The new plant is expected to centralize production operations distributed across different facilities and improve manufacturing efficiency, logistics integration, and future…
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Tax Decision on Buses Is Reversed

Fabio Ferraresi The Brazilian federal government reversed the decision to resume the application of taxes affecting school buses acquired under the Caminho da Escola program, administered by the Fundo Nacional de Desenvolvimento da Educação (FNDE). The discussion involved the potential reintroduction of tax charges impacting the cost structure of buses supplied through the public procurement framework, particularly related to federal and state taxation such as IPI and ICMS, as well as uncertainty…
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Indian Preet Plans Tractor Manufacturing Plant
Preet, an Indian agricultural machinery manufacturer, has announced plans to establish a tractor production facility in Brazil, in a move to strengthen its presence in the South American agricultural equipment market. The project involves local assembly operations designed to increase market proximity, reduce logistics costs and improve competitiveness in segments typically dominated by established global OEMs.
The investment reflects a strategy to expand the company’s manufacturing footprint in regions with strong demand for agricultural mechanization, particularly in medium-horsepower tractor categories.
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Selic Interest Rate Cut Has Limited Impact
The initial reduction in Brazil’s benchmark interest rate (Selic) is expected to have limited short-term impact on the automotive sector, according to industry assessments. Despite the start of a monetary easing cycle, financing conditions remain restrictive, with credit costs still elevated compared to historical averages.
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VWCO Tests B100 Soybean Biodiesel
Volkswagen Caminhões e Ônibus (VWCO) is conducting tests using B100 soybean-based biodiesel in heavy-duty diesel engines as part of its efforts to evaluate lower-carbon fuel alternatives compatible with existing internal combustion engine (ICE) platforms. The tests aim to assess engine performance, durability and emissions behavior using 100% biodiesel without fossil diesel blending.
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GAC Plans Vehicle Production in Brazil
Chinese automaker GAC has announced plans to establish vehicle production in Brazil as part of its strategy to expand its presence in Latin America. The initiative involves local manufacturing operations aimed at improving cost competitiveness, mitigating import tariffs and enabling greater alignment with local regulatory and market requirements. The company has been advancing its global expansion strategy with a portfolio that includes internal combustion engine (ICE), hybrid and battery electric vehicle (BEV) powertrains. Local production is expected to support supply chain development and improve access to financing mechanisms tied to domestic manufacturing, while strengthening the brand’s positioning in one of the region’s largest automotive markets.
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Brazil Vehicle Exports Rise To Mexico, Fall To Argentina

Fabio Ferraresi Brazilian vehicle exports showed mixed performance in early 2026, increasing significantly to Mexico while declining sharply to Argentina. Growth in shipments to Mexico reflects stronger demand conditions and efforts by Brazilian OEMs to diversify export destinations, while the drop in Argentina is linked to weaker domestic demand, tighter import controls and foreign exchange constraints.
Overall exports remained supported by regional demand adjustments and production planning by automakers,…
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Brazil Truck Production Drops in 2026 First Two months
Brazilian truck production fell 27% in the first two months of 2026 compared with the same period of 2025, despite expectations linked to the Mover Brazil program. The decline reflects weaker domestic demand, cautious fleet renewal decisions and slower freight activity at the start of the year.
OEMs adjusted output in response to lower order intake, particularly in the heavy duty segment. The result highlights ongoing volatility in Brazil’s commercial vehicle cycle and limited short term impact of policy support measures on production levels.
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