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 7000 trucks and 1000 buses, and a workforce of around 1000 employees. The 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. The Newco will leverage on the extensive product portfolio Iveco has available both in West 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.

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. 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 bodies manufacturing.”