Skip to comments.GM to invest $1B [of your money] in Brazil
Posted on 11/18/2008 12:59:32 PM PST by cll
GM to invest $1B [of your money] in Brazil
Sao Paulo General Motors Brazil wants to invest $1 billion in the country to avoid the same problems that plague its parent company in the United States because of the financial crisis, according to press reports [in South America].
According to Jaime Ardila, president of GM Brasil-Mercosur, the resources will come with the financial bailout package that the manufacturer will receive from the United States government, and will be used to complete the renovation of the product line until 2012.
It would be illogical to remove investments where there is growth and our goal is to protect the investments in emerging markets, he said in a statement published in the financial daily Gazeta Mercantil.
Ardila added that GM Brazil will wait for the markets behavior to know what decisions to make in regard to employee layoffs, a policy adopted in other countries by the company.
To Ardila, the 8 billion reales ($3.5B US) boost for the Brazilian automotive sector announced recently by the [Brazil] federal government and the State of Sao Paulo, has already improved sales, which had declined by 12% in October.
The executive hinted that the company will operate in 2009 in a conservative scenario, with a forecast of 2.6 million units produced, at worst, and 2.9 million units, in a best case scenario.
Sales this year will reach 2.85 million vehicles, which represents a 15% improvement over last year.
That’s right, GM is worldwide. Europe, China,
Russia, even a couple assembly plants in the USA.
Yes, but I thought they wanted the money to retool their assembly lines here in the U.S., not abroad.
Nowadays, people just say whatever needs to be said in order to get the money.
In Sept there was such a crisis that they rushed through a $700B bailout package -- we didn't have time to talk! We had to act!! But now, they don't even know what to do with half the money -- it will be sitting around until Obama takes office. Obama himself got into office by promising to give health care, college tuitions and cash to everyone (except the rich). Well, that ain't happening.
So, yeah, they got $1B to retool MI and now they're sending that money to Brazil. You got a problem with that??
off subject but....
Waters talking with Cavuto and Cavuto is gving her a lesson in truth!!!
Waters is THE example of a Democrat
Cool, more jobs shipped out. Outsource all jobs, print more money, and borrow! It’s the new American way.
GM worldwide is the entity having the cash flow problem. If GM sells off its worldwide plant, what remains in the USA would be so far in the red it would fail immediately.
And you can blame unions and the government for that
Well if Toyota and the other “foreign” car makers are making cars in the US, and GM is making cars abroad, then which of them is doing more to help our economy and give people jobs?
I imagine the main reason GM wants to make cars in Brazil is that they can’t afford UAW scale wages. At one time, labor unions may have had a purpose, but for as long as I can remember they have been mainly destructive, even to their own members.
There should be no bailout as long as the UAW survives in its present form. And it’s long past time to revise the labor laws—and NOT by doing away with secret ballots in union elections.
But smart governments have been in short supply lately.
How American is that car?
It’s harder than ever to figure out which cars are the most American. The government requires that automakers disclose what percentage of a new vehicles’ components are U.S. or Canadian and where the vehicle was assembled. Here is the information for most new models. The 2006 data was the latest information disclosed to the National Highway Traffic Safety Administration by automakers. The 2007 and 2008 statistics were compiled by USA TODAY from automakers and from visits to car dealerships. (Story)
Manufacturer Make and model
Model year Percent content US/ Canada Assembled in:
Yup. Just remember, most of those GM plants only do final assembly, the parts are all made elsewhere now.