General Motors has finished reaching an agreement with workers at its São José dos Campos plant in Brazil to reduce labor costs and allocate a new vehicle to the factory. The agreement is part of a plan that seeks to improve the fitness of GM’s business in the country, while guaranteeing R$5 billion (about $1.33 billion USD) for the plant to produce the next-generation Chevrolet S10 mid-size pickup.
In a rather unusual turn of events, the announcement was made in a statement by the plant’s workers union. A GM Brazil spokesperson merely said that “negotiations with the union and officials of the GM factory in São José dos Campos concluded successfully.”
After six rounds of rather intense negotiations spanning the course of two weeks, the majority of the 4,000 workers at the GM São José dos Campos plant approved a list of austerity proposals requested by GM in exchange for the allocation of the new vehicle.
Brazil-market 2018 Chevrolet S10
Among the approved proposals is reduction of inflation-based salary adjustments, a reduction of the base salary for new hires, and the introduction of new production shifts to increase productivity.
This investment in the GM São José dos Campos plant to produce the next-gen Chevrolet S10, which also includes provisions for the S10-derived TrailBlazer SUV, represents half of the R$10 billion ($2.66 billion) allocated by GM to invest in Brazil between 2020 and 2024. The remaining $1.33 billion is earmarked for the other major GM Brazil facility – the the GM Sao Caetano do Sul plant, which is expected to produce the next Chevrolet Tracker and a future small, car-based pickup, likely the replacement of the South American-market Chevrolet Montana.
Brazil-market 2017 Chevrolet S10
Last month, GM announced that its upcoming investment cycle in Brazil is subject to a restructuring program that makes the unit more financially viable. For that reason, the company opened negotiations on January 21st with dealers, suppliers and plant employees to reduce costs and improve the operating fitness of the South American business unit. In addition, GM is also in talks with the state government of São Paulo to obtain tax credits and concessions.
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Comments
WARNING: Incoming “why isn’t this money being invested into U.S. plants” or “they should be building these in the U.S.” comments!
No, no, that would be “Globalism is perfect China China China Mexico Mexico, look away now”…lol Good to see Sean, sorry “Where’s the Z/28?”/ steve is a little triggered though. It’s working.
Actually, I am glad that GM is investing in Brazil now. The country, like Venezuela, has been ruined by socialism. Now that there is a Conservative, anti-socialist President in power there who gets along well with our President, it is the perfect time to invest.
Pro-Trump president just elected in Brazil. Works for me.
Remember when Sean was trying to scaremonger us about the “trade war” with China? Lol Notice Sean or GMA doesn’t write anything more on the subject? Let’s see why…
SINCE PRESIDENT TRUMP TO A STRONG STANCE AGAINST UNFAIR CHINESE TRADE PRACTICES:
* U.S. economy has continued to grow at a record pace…Chinese economy has dropped to multi-decade lows and continues to contract as exports drop…
* U.S. stock market = strong and always setting or hear record levels…
Chinese stock market down 30%
* American unemployment at 50-year low and manufacturing jobs booming…Chinese unemployment growing and many companies shifting production out of China.
Sorry, Sean, but your left-wing scaremongering just doesnt work anymote…Americans have caught on to the whole fake news thing…
and yet national debt hits bigly $22 trillion for first time in history. usually the debt goes down when the economy is humming along.
reminds me of people who think they are rich after maxing out their credit cards to go on a cruise.
There should be no complaints. GM spend a whopping two percent of this amount recently at Spring Hill.
Yes, let’s invest in this country instead of our own !! It’s getting real hard to stay loyal to GM, even after 50 years !
This is for products that will be sold in South America. They couldn’t be made cheap enough in the US and shipped. And note none of them are cars.
You’ve no clue how the global auto business works, do you?
I’m saying , gm said it cost to much to retool Lordstown but spends 1.3billion else where ,jus sad & a slap in the face
I think Machete Mary said it would have cost a whopping $150 Million to retool Lordstown for the Blazer. I have no problem with them investing in Brazil, but how bout sending some of that investment to the US and Canada for a change?
When is everyone going to realized that GM, Ford and Chrysler (FMC) are global companies. Thanks to Trump tariffs on steel, it just makes it more difficult to turn profit then export. Brazil is a hug market and the rest of SA. If it makes money for GM then it helps its stock so to make money buy a GM stock. Ever wonder how many people travel to the US as tourists from Brazil? 1.6 million in 2016. That is a lot of money that comes back to the USA. Ever wonder why Florida doesn’t have a state income tax? South American’s love Disney.
.
https://www.statista.com/statistics/214807/number-of-visitors-to-the-us-from-brazil/
https://www.just-auto.com/news/gm-and-toyota-to-boost-brazil-exports_id176262.aspx
Tourism is a low-wage industry filled with dead-end part time jobs. There is absolutely no comparison whatsoever between a major manufacturer and low-wage service jobs. Disney has always paid their people very low wages (about $10 an hour).
My daughter in law works in the HR department for Universal. I guess 27,000 employees don’t think so. So the auto industries pay higher wages and benefits, it’s all added to the cost of the vehicle, same as the high cost to park admissions.
Recommendation to GM: The S-10 is a cool lifestyle vehicle. Build that and the BOF Trailblazer at one of the plants you are going to idle.
Recommendation. To you. Get a clue.
The S-10 truck is built as with some modifications as the Canyon and Colorado.
Changes are made to suit the markets it is in. Same with the Holden Colorado.
The same changes are needed to bring in the Trailblazer as most people would not like it here as built.
On the other hand we are now exporting the Acadia now from the USA with only a small invest,ent in the SpringHill plant.
Then GM should have no problem coming up with this for the US since they are already building the Colorado here.
Nevertheless, Ford is coming out with a sub Ranger pickup that will be sold in the US, not to mention the Bronco. Where are GM’s entries in those segments? No, Acadia and Blazer are not competitors for the Bronco.
Many post here show how we have gathered a cache of posters with no real world business understanding.
The fact that this truck is only built fit South America p, sold in South America and is most profitable to be built in country there.
Well using our logic, the Blazer and Terrain should be built in the US since that is were most of its sales will be.