International Industria Automotiva da America do Sul Ldta. (“IIAA”), the South American subsidiary of Navistar International Corporation, today celebrated the beginning of commercial truck production at the Navistar Industrial Complex, the company’s manufacturing facility in Canoas, Rio Grande Do Sul, Brazil. The new truck manufacturing line will have capacity for 5,000 trucks per year and potential for added expansion as demand grows.
The 40,000 square-meter facility already serves as a parts distribution center and produces diesel engines for MWM-International—a leading manufacturer of diesel engines from 2.8 to 13 liter for Latin America and other global markets, serving commercial vehicle, agricultural, industrial and marine applications.
“We’re seeing great success in Brazil with our MWM engine business and we remain committed to the future in Brazil as we begin our truck manufacturing operations in Canoas,” said Eric Tech, president, Navistar Global Truck and Engine. “Our business in Brazil has served as a great model for our global growth efforts. Our ongoing investment in the Brazilian truck market—one of the largest commercial truck markets in the world—is a logical next step in our strategy.”
According to the company, Navistar Engine Group is a leader in technology and development of diesel engines in Latin America. With more than 3.8 million engines produced in its 59-year history, the company has a complete line of advanced technology engines – 2.5 to 13 liters and 50 to 428 horsepower – that meet the strictest emissions standards for pollutants. The company’s products compete in very diverse market segments including: vehicular, agricultural, industrial and marine. During the last three years, Navistar has invested more than $200 million USD in Brazil on a number of important strategic initiatives, including manufacturing operations, research and development, an emissions change from EURO-III to EURO-V standards and new product launches for the Brazilian truck market. By leveraging the existing facility in Canoas, Navistar was able to avoid a significant investment required by a greenfield project.
“Our Brazilian business is having a strong year and their success is an important part of the great progress we’re making in our company’s turnaround strategy,” Tech added. “While we remain focused on improving our core North American business, we continue to look for smart, strategic ways to invest in select global markets and our investment in Brazil is just one example of that approach.”