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General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program


General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program
By Russ Dallen | Latin American Herald Tribune

SAO PAULO -- General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to "complete the renovation of the line of products up to 2012."

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil.

Meanwhile, he cut the company's revenue forecast for this year by 14% to $9.5 billion from $11 billion, as the economic crisis began to cause rapid slowdowns in sales.

GM already announced three programs of paid leave, and Ardila added that GM Brazil "is going to wait and see how the market behaves in order to know what decision to take" with regard to possible layoffs.

For Ardila, the injection in Brazil's automobile sector of 8 billion reais ($3.51 billion) recently announced by the federal and state governments of Sao Paulo "has already begun to revive sales," which fell by 12% in October.

The executive said that the company will operate a "conservative" scenario in 2009 with an estimated production of 2.6 million units, and another more "optimistic" that contemplates sales of 2.9 million.

This year sales will reach 2.85 million vehicles, which represents a growth of 15% over last year.

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I'm under the impression that our tax dollars are bailing out all the poor rich kids, so that means "at some point" (decades, centuries, millennia?), we will get repaid. I would like my refund to be a small quantity (10-25 kilos) of Pantanal Purple Dickdrop (puniceus peniscado), as by then all the gold will be offshore and the dollar will be worthless. I figure if I got to be poor, I might as well smoke something that put's my dick in the dirt.

Sign me up too!

REAL "CHANGE"? http://www.dsausa.org/about/index.html

More wasteful spending from an auto manufacture not surprising, learning about the unions and what they make compared to Toyota and the others no wonder they are doing fine, it's why i rent imports from car rental raleigh anytime i'm going on vacation the last thing i want is more money going towards the domestics.

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