Iveco in joint venture with Larimar Group, South Africa, to produce trucks and buses for the African continent
Turin, 31 October 2012
Iveco, a Fiat Industrial company, and Larimar Group, a leading South African public transport operator and bus bodybuilder, have signed an agreement to set up a joint venture for the manufacturing of trucks and buses, in South Africa. The agreement underpins Iveco’s strategy of manufacturing globally, while tailoring products for local needs.
The new company (Newco), in which Iveco will hold 60% of the shares, will operate in a manufacturing facility in the suburbs of Pretoria with an annual capacity of 7,000 trucks and 1,000 buses, and a workforce of around 1,000 employees. Newco will assemble light, medium and heavy duty commercial vehicles as well as front engine and low floor city buses. Production will start in the second half of 2013 with the Eurocargo range.
Alfredo Altavilla, CEO of Iveco, said: “This joint venture is targeted to serve both the local market, which is one of the most prominent in the region, as well as all the other neighbouring countries federated within the Southern African Customs Union. Newco will leverage on the extensive product portfolio Iveco has available both in Western Europe and in China.”
The trucks will be commercialised by Iveco South Africa to the entire southern African region, through its existing distribution network, whereas the buses will be distributed directly by the joint venture.
Franco Pisapia, Larimar Managing Director, said: “The Larimar Group is highly honoured to enter into a partnership with Iveco and contribute to Iveco’s growth in Africa. We are proud to contribute to this joint venture our manufacturing experience in South Africa and specifically our knowledge of the bus market and of bus bodywork manufacturing”.
Iveco in Africa
Iveco is present in Africa with a dedicated full range of models engineered for the local market. The company operates across the continent with 40 dealers and through more than 50 sales points. Moreover, more than 70 service points provide aftersales assistance to customers all over Africa.
The range of Iveco products for the African market has been reengineered to perform at their best, in the context of the local requirements. The product line-up has been adapted to meet the extreme climate and road conditions.
Iveco
Iveco, a Fiat Industrial company, designs, manufactures, and markets a broad range of light, medium and heavy commercial vehicles, off-road trucks, city and intercity buses and coaches as well as special vehicles for applications such as fire fighting, off-road missions, defence and civil protection.
Iveco employs almost 25,000 people and runs in 11 Countries in the world using excellent technologies. The company operates in Europe, China, Russia, Australia and Latin America. Around 5,000 sales and service outlets in over 160 Countries guarantee technical support wherever in the world an Iveco vehicle is at work.
LARIMAR GROUP
The Larimar group is a diversified group of companies with interests in the passenger transport, freight transport, vehicle manufacturing, vehicle retail, engineering, manufacturing, financial services and property sectors. The Group has an annual turnover in excess of R2.1 billion and employs more than 4,100 employees.
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ref: IVECO 12041