X

GM Reiterates Commitment To Brazil As It Plans New Investment

In the midst of tense relations with its workforce and internal speculation about the automaker’s eventual departure from the country, GM has just emphatically announced that it has no intention to leave the Brazilian market, and is even preparing a new investment cycle for its local business.

GM took advantage of the 2024 AutoData Perspectives Congress to communicate that it does not plan to leave Brazil, and on the contrary, is actually planning its next investment cycle that will be announced in the near future. The automaker was forced to clarify its current situation in the largest country in South America, calming the exit rumors that have arisen in recent weeks in conversations between the company’s suppliers and dealers.

“No. GM will not leave Brazil,” said Vice President of Communications and Government Relations at GM South America, Fábio Rua. “On the eve of celebrating 100 years in Brazil, GM will soon announce its next investment cycle in the country. We are committed to the future and to decarbonization,” he added.

Thus, GM Brazil clarifies the objectives for its manufacturing operations in the country and seeks to generate confidence in the midst of an environment of great uncertainty – created by recent union problems and the lack of clarity in future projects for local plants after the imminent end of the current investment cycle. In fact, the 2020-2024 financial plan had to be adjusted due to the adverse effects brought by COVID-19 and expires next year.

However, the new investment cycle for Brazil should be announced during calendar year 2024 – according to GM South America’s head of communications. Notably, Rua used the word “decarbonization” right after talking about the future investment announcement in the South American country and that suggests that there will be electrified vehicles among the future products that the company plans to manufacture in Brazil.

By 2024, GM projects growth of 2 to 5 percent in the Brazilian market thanks to some incentives and actions such as the government’s commitment to accelerate the decarbonization process. However, it emphasized improving production efficiency as well. “With an idle capacity of 53 percent, we need to be more efficient. Although we can produce 750,000 vehicles, our desire is to make at least 600,000 per year. I hope that 2024 will be better than 2023,” Fábio Rua finished.

Subscribe to GM Authority as we bring you the latest GM Brazil newsGM South America news, and ongoing GM news coverage.

Deivis Centeno: Deivis is an engineer with a passion for cars and the global auto business. He is constantly investigating about GM's future products.