Iveco has announced the reorganisation of its Latin American division, aimed at further developing its business in Brazil. The company has also confirmed its intention to launch a new model on the local market in August.

"From 2004 to 2005 we increased our share of the Brazilian truck market from 4.6 to 5.2%. We want to grow more quickly and the changes we are making to our structure will give us the best opportunity to achieve this target," says Jorge Garcia, Iveco's president of the Latin American market.

As part of the changes, the head office of Iveco Latin America will be transferred from Sao Paulo to Belo Horizonte, in the Minas Gerais State, which is also the location of the Fiat Group head office in Brazil. This, Iveco says, will provide the opportunity to develop a greater synergy of processes and systems, especially in accounting management, import-export, IT and financial services.

The relocation will also position the head office just 80km from Iveco's commercial vehicle and engine manufacturing facility in Sete Lagoas.

Another result of the reorganisation will be the strengthening of Iveco's sales representation across Brazil, with seven new regional offices set to open in the main Brazilian cities. This new business structure will improve the relationship between Iveco and its 53 distributors operating across the country, helping to co-ordinate sales and marketing functions at a local level. It will also make it simpler to identify opportunities for new distributors; in relation to this, two new dealers will open in July in the Northern East State.

In August, Iveco will launch the Eurocargo 450E32T to the local market. Named the 'Cavallino', the vehicle will be powered by a 320 hp engine, and will be targeted at a market which at present accounts for 8,000 trucks per year in Brazil (25% of all heavy vehicle sales, or approximately 10% of the total amount of trucks sold in Brazil).

The launch of this vehicle sees Iveco introduce the Cursor 8 engine in Brazil, with integrated electronic management, which is compliant with Euro 3 standards. Production of the Cursor 8 engine will start in July in Sete Lagoas.