GM restarts the construction works of new engine plant in Joinville (SC)
2010-07-20

• This unit will be built according to the most advanced technological and sustainability processes and will start operating in 2012
• The total investment will be of 350 million Real

Joinville (SC) – General Motors do Brasil will restart, in August 2010, the filling and leveling ground works for building a new plant of engine and automotive components in Joinville (SC). The inauguration of this unit is foreseen for 2012. Its initial production capacity is estimated at 120 thousand engines and 200 thousand aluminum cylinder headsper year.

The announcement was made in Joinville this Tuesday (July 20 th) by Mr. Luiz Moan Yabiku Junior, Director of Institutional Relations of GM do Brasil, upon information to the Mayor of Joinville, Mr. Carlito Merss. The information was also sent to the Governor of State of Santa Catarina, Mr. Leonel Arcangelo Pavan.

“GM has decided to restart in August 2010, the construction of the original project of engines and automotive components in the plant in Joinville, enhanced to the newest and modern technologies available, and the first step is the filling and leveling ground works”, highlighted the executive.

According to him, the project was delayed due to the strong rains and floods that struck the territory of state of Santa Catarina at the end of 2008, that crippled the filling and leveling works that were being conducted in that place.

Mr. Moan also explained that the company can now resume the project, after conducting the audience that took place last Thursday (July 15 th), and the beginning of preliminary procedural steps for obtaining the additional environmental license.

Flexibility and expansion

Mr. Jaime Ardila, president of GM South America, highlights the importance of the new unit, required for complying with the strong Brazilian market demand and also with exports: “The new plant in Joinville will be one of the most modern GM plants in South America and in the world, incorporating the most advanced automotive technology and sustainability processes. The production of engines and components in Santa Catarina will help to leverage GM growth in that region, that has acquired still more importance within the company, by creating GM South America.

Mr. José Carlos Pinheiro Neto, vice-president of GM, highlights that the “project will require total investments of 350 million Real and according to the time table, the new plant will start operating in 2012″.

According to Mr. Marcos Munhoz, General Director of GM Communications, Public and Governmental Relations, the election of Joinville for implementing the new project happened due to the fact that the city provides “excellent infrastructure and very qualified workforce, besides being very close to the five ports of State of Santa Catarina”.

A Sustainable Project

The new GM unit will occupy a total area of 500 thousand square meters and the plant and its auxiliary facilities will totalize an area of 73 thousand square meters. Thus, similarly to the remaining company units in Brazil, the new plant will be built according to the most advanced concepts of sustainability, lined-up with the worldwide policies of environmental protection adopted by GM. An area of 220 thousand square meters, practically half of the land, will be reserved for sheltering environmental preservation and green areas.

At first, the production of engines and components at Joinville plant will be intended for vehicles manufactured at GM Automotive Industrial Complex in the city of Gravataí (RS). Part of the components will be also sent to the engine plant located in Rosario Automotive Industrial Complex, in Argentina.

General Motors, one of the world’s largest automakers, was founded in 1908. With global headquarters in Detroit, GM employs 205 thousand people on the main regions around the world, having operations in 140 countries. GM, along with its strategic partners, manufactures vehicles in 34 countries, selling and rendering services for these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM’s biggest domestic market is the United States, followed by China, Brazil, Germany, United Kingdom, Canada and Italy. GM subsidiary OnStar is the industrial leader concerning vehicular safety service and data. General Motors acquired General Motors Corporation operations on July 10th, 2009, and the references to previous periods in this Communication to Press as well as other press materials refer to the old General Motors Corporation. For further information on new General Motors, access www.gm.com.

In Brazil, GM has been manufacturing and selling Chevrolet brand vehicles for 85 years. In 2009, Chevrolet accomplished a sale history record in the country, comprising a sale volume of 595,536 vehicles. The company has three Industrial Complexes that manufacture vehicles, located in São Caetano do Sul and São José dos Campos (both in State of São Paulo) and Gravataí (State of Rio Grande do Sul). It also counts on plants of Mogi das Cruzes (production of stamped components), Sorocaba (Parts Distributor Center) and Indaiatuba (Proving Ground), which are all also located in State of São Paulo, besides a modern Engineering and Design Technological Center, in São Caetano do Sul, being able to fully develop new vehicles. The Brazilian subsidiary is one of the five global centers for creation and development of vehicles, comprising engineering, design and manufacturing fields. Further information can be found at sites http://media.gm.com and www.gmnoticias.com.br.