General Motors’ CEO Mary Barra has announced the company will invest $2.8 billion in Brazil over the course of the next five years to introduce new technology and help maintain its plants and other operations in the region.
Barra made the announcement to Brazilian media while on a visit to the country to meet President Dilma Rousseff. She added there are some challenges ahead for GM in Brazil, but ensured the company was committed to its operations in country, one of the automaker’s most important markets.
Brazil’s auto industry has taken a turn for the worse as late. Total production for the auto industry has been cut by 16 percent so far this year as sales slow and the economy continues to decline. GM is considering putting workers at its Sao Jose dos Campos facility on paid leave due to slowed production and may cut 1,000 jobs at the plant altogether.
Barra did not discuss labor issues in the country during her press conference. The union representing metalworkers at the plant said it will hold GM to its word of increasing investment at the plant, even though the automaker is considering cutting jobs to protect an initial investment in the facility.