American auto titan General Motors is planning to invest $2.65 billion in two of its Brazilian plants in order to build “several new products” over the next five years, the company said Tuesday.
Reports suggest that the investment will be exclusively directed towards the new models that the company plans to launch from 2020 through 2024 in South America. In an emailed statement to Automotive News, GM spokesman Dan Flores said that the investment will help the company “build a sustainable business in Brazil leveraging the Chevrolet brand,” He declined to elaborate on how many products the investment will support.
Reports suggest that 15,000 jobs will remain at the São Caetano do Sul and São José dos Campos plants.
The announcement comes a few weeks after top executives confirmed that the company was evaluating options with government officials, unions and suppliers to make the automaker more cost-effective in the region. Flores said that the support of “key stakeholders”, was “fundamental to make the business viable from a cost perspective.
Additionally, Flores also said that the company will continue to evaluate further actions to tackle challenges in the region such as material, labour and logistics cost, infrastructure, taxes and a high cost of capital. “We need to face these issues to build a competitive manufacturing basis in Brazil and the region, to be able to have a sustainable business,” Flores said.
Reports suggest that 15,000 jobs will remain at the São Caetano do Sul and São José dos Campos plants. However, it is unclear if additional jobs will be added in the future. In a year when auto titans saw losses, General Motors came out projecting a strong growth. When it comes to foresight, General Motors has proved itself to be a leading Seer of Automotives.
In a year when auto titans saw losses, General Motors came out projecting a strong growth.
Some of the developments at GM come as relatively new developments while others are years in the making. All of this, however, shows a shrewdness that foretells continued growth. The company’s publicized restructuring that involved the closure of plants in the US made way for huge criticism. The move, as we know, has already led to hundreds of hourly wage employees being relocated or laid off.
The restructuring aims at expanding the production of its more popular SUV, truck and crossover models and subsequently phase off its poorly selling sedans. These plans, when announced in November, were presented as a way to streamline operations that would future-proof the brand from an evolving market and world.