Eaton Corporation has signed two new agreements in South America that are expected to generate more than $US190 million in additional truck sales at the company’s transmission facility in Valinhos, Sao Paulo, Brazil. Both agreements are for eight years.

Volvo Trucks has agreed to have Eaton begin manufacturing its heavy-duty transmissions for the South American market. Total sales are estimated at $112 million.

In a separate agreement, Eaton will manufacture and deliver transmissions for AGCO and its four-wheel agricultural tractor project, known as the Buccaneer. Total sales are estimated to be $80 million. The agreement begins in 2003.

Under the Volvo agreement, Eaton will manufacture and deliver 100% of the Volvo transmissions that will be needed to meet production requirements in the South American market. Deliveries are scheduled to begin in October 2004.

The 14-speed transmissions will replace similar units that are now being imported from Sweden, as well as a different model now being manufactured by a local independent transmission manufacturing company.

For the new AGCO business, AGCO will be taking delivery of 8 X 8-speed, 12 X 12-speed, 12 X 4-speed and 8 X 2-speed transmissions at its manufacturing plant in Canoas, Rio Grande do Sul, Brazil. The transmissions were previously manufactured in the Massey Ferguson facility of AGCO in the United Kingdom.

The tractors and transmissions will be marketed throughout Europe, Asia, Africa and the Middle East.