GM to Invest $778 Million in Brazil

As the South American country becomes more and more of a promise land for automotive manufacturers, an increasing number of industry players are relocating, expanding or setting up businesses here.
Long term Brazilian-manufacturer General Motors do Brasil announced today it will invest some $778 million in its Sao Caetano do Sul and Mogi das Cruzes plants, as a means to localize components with Brazilian suppliers, increase production and update the two facilities.

“The definition of this new plan is part of our long term strategy of a total investment of R$5bn, within the 2008 through 2012 timeframe, which will allow us to modernise our plants, increase the production capacity and also completely renew our Chevrolet vehicle portfolio in Brazil," GM do Brasil and Mercosur president Jaime Ardila said according to just-auto.com.

In the end of 2009, the company announced it will hire 600 new workers at three Brazilian factories in the state of Sao Paulo to keep up with the growing demand for the models assembled locally.

250 workers will be hired at the Sao Caetano do Sul and Sao Jose dos Campos facilities while the Mogi das Cruzes factory will receive an extra 100 employees. Earlier in September 2009, GM opened the biggest technical center in Latin America after investing a total of $100 million.

"This is explicit evidence of GM’s commitment to Brazil,” Jose Carlos Pinheiro Neto, vice-president of GM do Brasil said, adding that the investment is self-financed with the cash generated by the Brazilian operations.