July 19, 2007
GM announces US$500 million investment for Argentina and Brazil
Sao Paulo, Brazil – Rick Wagoner, Chairman and CEO of General Motors, has announced that the company will invest US$500 million in its operations in Argentina and Brazil. The funding is for the development of a new generation of small vehicles for Latin America and other emerging markets, and the expansion of GM’s Brazilian product development centre.
The new, small vehicles will be built in Argentina and Brazil, and will require upgrades to GM’s plants in Rosario, Argentina and Sao Caetano do Sul, Brazil. The investment will also fund product development work to be done at the GM Brazil product development centre in Sao Caetano do Sul.
“We have been growing our engineering resources in key emerging markets like Brazil, China and India, not only for development of vehicles for their own markets, but for other emerging markets as well,” Wagoner says. “This investment will enable us to take full advantage of the expertise we have in Brazil and support our planned local and global sales growth.”
GM reports that its sales have been very strong in Latin America; through the first two quarters of 2007, GM sales in Brazil are up 18 per cent, while sales in Argentina are up 16 per cent, versus the same period in 2006. GM Argentina’s sales of 75,000 and GM Brazil’s sales of 410,000 in 2006 set all-time sales records.