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Volvo Trucks’ Unveils Alternative-Fuel Engine
Emiliano Marzoli Volvo Trucks has unveiled a multi-billion SEK investment of an entirely new 13-liter combustion engine platform. Engineered to meet Europe’s strictest efficiency mandates, these engines are the most fuel-efficient ever produced by the OEM, delivering immediate reductions in CO2 emissions.
Crucially, the platform is built with a “fuel-agnostic” architecture; the base engine is ready to run on renewable diesel (HVO) and bio-gas, and is structurally designed to accommodate future hydrogen internal combustion engine (H2ICE) applications. This platform rollout complements Volvo’s existing battery-electric and fuel-cell programs, cementing their “three-path” strategy toward net-zero emissions by 2040 while continuing to secure top-tier safety marks, including recent five-star Euro NCAP ratings for its regional distribution trucks.
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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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A Drop of Up to 10% on the Horizon
EDITOR’S NOTE: This article is reprinted with permission from the publisher AutoData. The article includes substantial information from Priscila Von Zuben Spadine, Data and Forecast Manager at Power Systems Research.
By Natasha Werneck
AutoDataHigh interest rates, weak demand, and the smaller impact of the Caminho da Escola program are dragging down the pace of Brazil’s bus industry
Priscila Von Zuben Spadine After posting moderate growth in 2025, although below initial expectations, the Brazilian bus market entered 2026 in contraction, recording a pronounced decline in the first quarter compared with the same period last year. Data presented by Anfavea, the association representing chassis manufacturers, show that, despite a punctual rebound in March, the performance of the last three months reinforces a slowdown scenario.
Registrations rebounded and totaled nearly 2,000 units in March, up 50% from February and 9.3% higher than in the same month of 2025. In the quarter to date, however, the result remains negative: 4,400 buses were licensed, representing a 19.6% decline compared with the same period in 2025.
“For the bus market we had projected a 3% decline in 2026 and, through March, the contraction is already above 19%,” says Anfavea president Igor Calvet. According to him, the scenario “is beginning to become concerning,” especially because of the sector’s structural dependence on public programs: “A large part of the market depends on public policy, especially the Caminho da Escola program, which carries a great deal of weight.”
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2026 Global MHCV Production Increases Seen
Chris Fisher Global medium and heavy truck production is expected to increase in most important regions this year, but China’s MH truck segment probably will see a major structural change. Overall production in South America is expected to be flat, although Argentina is likely to post a gain of almost 10%.
North America. Medium and heavy truck production in North America is expected to increase by 9.4% this year compared with low 2025 production. While class 8 truck production is expected to increase by 11.3% this year as order rates for class 8 trucks improved strongly from December – March.
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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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Strait of Hormuz Closure May Tip Global Economy
Chris Fisher Americans are warily eyeing prices at the pump as oil shipments through the Strait of Hormuz grind to a halt amid the threat of Iranian attacks on vessels. The IEA took the unprecedented step of saying it would release 400 million barrels of oil from reserve on Wednesday. But oil is far from the only product for which the world economy is heavily dependent on the shallow, narrow waterway which connects Persian Gulf ports with the rest of the world. From the metals market to agriculture and autos, a de facto closure of the strait would ripple through business sectors and both the U.S. and world economy.
Aluminum is a good example. It is one of the biggest non-petroleum commerce casualties of the U.S.-Iran war. In 2025, the Middle East accounted for roughly 21% of unwrought aluminum imports and 13% of wrought aluminum imports — and those percentages have been rising. Unwrought aluminum is the raw, unprocessed metal in forms like ingots and billets, while wrought aluminum has been mechanically shaped into sheets, rods, or other finished forms used directly in manufacturing.
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