Daimler will spend around BRL1bn (US$458m) on its two Brazilian commercial vehicle plants between 2014 and 2015, the automaker said.

"The financing will be placed mainly in research and development of new products and innovative technologies, as well as in process optimisations and modernisation of the two production plants Sao Bernardo do Campo (Sao Paulo state) and Juiz de Fora (Minas Gerais state)," it said in a statement cited by Reuters.

Since 2010, Daimler has spent around BRL1.5bn on the production of trucks, buses and components at the Brazilian locations.

Mercedes-Benz Cars recently announced it would spend initially around EUR170mi to build a new factory near Sao Paulo to make the C-Class and GLA in Brazil for local sale.

Man announces Rio spend