Daimler Says Brazil’s Truck Market Could Take Years to Recover

Sales of commercial vehicles in Brazil could plummet 50% this year and take as long as three years to recover, predicts Wolfgang Bernhard, who heads Daimler AG's truck and bus business.

He tells reporters the company's truck operations expect to continue "hibernating" for at least a year as the Brazilian truck market continues to shrink.

Demand for heavy trucks in Brazil dropped 44% in the first half of 2015 and continues to shrink as the country struggles with severe recession. On Thursday Standard & Poor's Ratings Services lowered its rating of Brazil's credit to junk status, further depressing the country's bond and equity markets.