Iveco is to invest US$68 / €51.6 / £34.8 million in its Brazilian operations, based at the Sete Lagoas plant in Minas Gerais province.

The company aims to produce 12,000 trucks through its Brazilian operation during 2007, of which around 30 per cent will be destined for regional export. In addition to Brazil, both Argentina and Venezuela are key markets for the Italian OEM. In Brazil, Iveco plans to increase its share of the truck market to 10 per cent from the current level of 4.2 per cent.

Jorge Garcia, who has overseen Iveco’s growth in Latin America has moved to take over the Australian operation, and will be replaced as of this month by Marco Mazzu, formerly responsible for the Case New Holland’s Agricultural business in Latin America, and most recently Regional President of CNH’s European Agricultural Equipment Business.

Quite where the mooted JV between Iveco and Tata for the Latin American distribution of joint branded vehicles fits is uncertain. In November, Iveco parent Fiat announced that it would make Tata Motors' new one-tonne pick-up truck at its plant in Argentina for Latin American and overseas markets from the second half of fiscal 2008.

Looks like the MAN Scania bid has finally died the death. In truth, it’s been coughing up blood in the hallway ever since Bernd Pischetsrieder received the surprise elbow from VW a month or so back, but the rejection by VW of the MAN offer – it is Scania’s biggest shareholder – has finally put the lid on things.

Good to see that Sergio Marchionne is getting with program and talking about Iveco and possible mergers, as per the FT this morning.

One of the stranger comments to come from Iveco executives during today's launch of the new Stralis was the assertion that "We didn't need to do this."

The fog clears a bit with reference to Iveco's announcement that it is to open a new R&D facility in Brazil at the Fiat Sete Lagoas plant at a cost of some $15 million.

This is Iveco's second major investment in Brazil this year. Back in January it announced plans to increase its share of the truck market to 10 per cent from the current level of 4.2 per cent, and committed an extra US$68 million to its Brazilian operations.

Due to open by the end of May, the new centre will focus on the development of both a light and a heavy truck platform for the Latin American market. Sources at Iveco tell us that it has nothing to do with - at least for the moment - Tata.

The vexed question of the Real is bothering Iveco.

Seems like those pesky Brazilians cannot keep their currency under control, and it keeps appreciating in value. This is a problem for Iveco, which has invested a large sum of money in the place, and now finds itself being priced out of a number of Latin American markets: this Bloomberg report cites the example of Chile, but, looking at the stellar rise of the Brazilian currency over the past few months, presumably what is bad for Chile is bad for the rest too. This chart shows how it's been doing against the US Dollar over the past few years.

Moreover, this can't be doing many favours for Mercedes-Benz, Scania, and VW. What too is the impact of a currency hike on Volvo's engine sourcing from Curitiba?

This seems an odd time for Iveco to be kicking up though. Did it not announce fairly recently the investment of a large amount of cash in Sete Lagos?

Here’s an elegant solution as to the what to do with MaxxForce conundrum that may – and we stress may – be exercising certain minds – and, we suspect, legal minds at that - in Munich.

Remember Iveco's deal with Tata?

And so to the Brazilian bit of BRICS, and the news that Daimler AG is to spend €600 million bumping up truck, bus and component production at its Sao Bernardo Do Campo facility in Sao Paolo state.