Brazil trucks, bus market needs up to 3 years to recover: Daimler
German automaker Daimler does not expect the Brazilian market for trucks and buses to return to growth for up to three years, Bloomberg News reported on Friday.
"We expect to continue hibernating," the head of Daimler's commercial vehicles division, Wolfgang Bernhard, was quoted by Bloomberg as saying at a meeting with journalists in Hamburg late Thursday.
Daimler announced at the end of August it had decided to cut working hours at its Brazilian truck factory instead of 1,500 jobs as it seeks to adapt to lower demand.
With the Brazilian economy experiencing its worst contraction in six years, Daimler Trucks had recently warned it wanted to make drastic reductions at its Sao Bernardo do Campo factory outside Sao Paulo where around 10,000 people are employed.
But Daimler Trucks said that after talks with labour leaders it had been agreed to cut output and salaries at the site by 20 percent from September to May 2016.
Bloomberg quoted Bernhard as saying it expects demand for trucks and buses in Brazil to plunge as much as 50 percent this year as the crisis in South America's largest economy gets worse.
© 2015 AFP