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 Gravataà 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.
Related Coverage & News
- Chevrolet info
- GM São Caetano do Sul factory info
- GM São José dos Campos factory info
- GM Gravataà factory info
- GM Joinville factory info
- GM Mogi das Cruzes factory info
- GM Sorocaba parts distribution facility info
- GM Brazil proving ground info
Comments
Global Export means America right? Importing Cruze from Brazil to Baltimore and Galveston? And Trump’s statement about off-shoring American jobs here? (Crickets….) Oh, Brazilians must be more involved in real estate deals than Mexicans.
Make America Hypocritical Again, Again.
Snowflake Alert!
No, this most likely has nothing to do with exporting to the US. I expect this to mean exporting to other markets within South and Central America, and perhaps to Australia.
The vehicles made in the factories receiving the investments do not exist in the US, Cruze excepted.
Yes, your argument is correct, no Cruzes to Baltimore and Galveston. However, no Cruzes exported out of Baltimore or Galveston, either.
One reason Abbot couldn’t care less about GM closing in Australia was because we had already lost our export markets and we were producing only for ourselves and a microscopic minority of U.S. Chevy SS customers and U.K. VXR customers.
We once exported Commodores to Saudi Arabia, Kuwait, New Zealand, Indonesia, South Africa, Brazil, Singapore, and others. We lost all those markets to assemblers in Thailand. America is following our example, with a very short interruption by Trump until his business advisory council collapsed, and now the investments again flow outwards to offshore underpaid jobs while profits go to the upper storeys of NY skytowers.
Well, the Cruze made in Lordstown does get exported across North America. But no mainstream vehicle made in North America will be exported to China, Brazil, Russia, India or Argentina because of the local manufacturing and content sourcing standards in those countries… do that, and you’re slapping on a price increase on your car equivalent to the import tax (between 11 and 37 percent, depending on country). Exporting from the US can work for certain segments (like Camaro, Corvette, Cadillacs and big SUVs) to some extent due to fatter margins on those vehicles… and also because they are assembled at a single site for global markets (Cadillac excepted, due to its required China factory).
It’s the cost of labor that killed Aussie manufacturing (as you well know, since it sounds that you’re Australian). The same might take place in the US… but hasn’t yet, at least not to the extent that it has in Australia.
That said, this particular investment is needed… unless you plan on somehow removing Brazil’s local production and content requirements. And they have a low-cost base to export to other Latin markets. I see no problems here.
PS: I hope you now see the independent nature of GM Authority. This kind of conversation would have never been able to take place here had we been sponsored or otherwise paid by GM… which, if memory serves me right, you alluded to earlier in the month.
I see your independence, and congratulate y’all for it. Cheers!
Latin America haven’t been infected by the suv craze yet. They still want sedans, hatchback and small cars. It would make a lot of sense to have small vehicle built there.
Yeah but the CUV craze is coming there too, unfortunately. There are already indicators of that in Brazil and Argentina.
The presidential business advisory council gets pulled from under Barra’s feet (apparently more quickly than the esteemed CEO could deal with) and then the next thing you know … investments are going offshore again.
Where’s our Trump friends and their loud protests? Oh, Charlottesville has catastrophized your ability to argue. Bye. So much for American jobs when you are so busy foaming about statues that were built in 1995-2005. Why didn’t you all keep the focus on jobs in America? You folks are so easy to sidetrack.
Trump diddled y’all.
Invest in Puerto Rico, GM.
NAFTA killed manufacturing in Puerto Rico . Oh Hillary and the dems forgot to tell you that . That is why Puerto Rico leaving the us would be between for the Island . Us high taxes , currency and minimum wage laws makes pr one of the most expensive places to manufacture . Sad. Have family still living on island . Bleek
If Hillary forgot to tell us something, then James forgot to tell us this, from WP:
“Following diplomatic negotiations dating back to 1990 among the three nations, U.S. President George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas signed the NAFTA agreement in their respective capitals on December 17, 1992.”
So the agreement was made by Bush I, in 1992. It only came into effect under a Clinton, and not the Hillary one, but you say it’s all Hillary’s fault, and the Dems’ idea.
Dunning Kruger Effect
Kahneman Tversky confirmation-bias
Freudian ego envy
Milgram obedience psychology
Zimbardo authority psychology
Need I go on? Why is it that you so eagerly publish your wrongity?
Invest the $4 billion RIGHT HERE and EXPORT the cars to Brazil.
As Alex mentioned earlier, you can’t do that.
Brazil has protectionist laws that make importing vehicles from another country financially impossible… with the exception of a few high-end models like the Camaro, which is only sold with an eight cylinder engine and the high trim level configuration in Brazil.
Maybe inform yourself about the various import and export laws globally, before making suggestions like that.