General Motors has announced plans to invest $1.4 billion USD (R$ 4.5 billion) across three of its factories in Brazil with the purpose of increasing its competitiveness in the country and preparing the recently-established GM Mercosur unit of GM South America, which includes Brazil and Argentina, “to become a global export platform.”
The three Brazilian facilities earmarked for the $1.4 billion investment include:
- $375 million (R$ 1.2 billion) earmarked for the GM São Caetano do Sul factory in the state of São Paulo, which produces the Chevrolet Cruze, Spin, Montana and Cobalt
- $437.5 million (R$ 1.4 billion) destined for the GM Gravataí factory in the state of Rio Grande do Sul, which produces the Chevrolet Onix and its sedan variant, the Chevrolet Prisma
- $593.7 million ($R 1.9 billion) allocated for the GM Joinville engine factory in the state of Santa Catarina, which produces engines, and
The announcement was made by President of GM Mercosur Carlos Zarlenga in the presence of Brazilian President Michel Temer.
“GM has a historic commitment to Brazil, where it has been present with its Chevrolet brand more than 92 years”, said Zarlenga (translated from Spanish). “We are realizing the largest investment plan of the industry in the country, which reinforces our confidence in the potential of market growth. The new contribution to the operations of São Paulo, Santa Catarina and Rio Grande do Sul will allow us to expand the Chevrolet product line, offer the most advanced in terms of technology, focus on connectivity, safety and energy efficiency”.
Zarlenga added that GM will continue to invest in Brazil, and that the $1.4 billion is part of a broader plan to invest $4 billion USD (R$ 13 billion) in its operations in the country between 2014 and 2020.