Posted on 01/30/2009 11:39:37 PM PST by Tempest
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.
Uhh this kind of misses the point - we aren’t trying specifically to help GM but rather the American economy...
What’s the NYSE symbol on that one?
I hope no silly governent types gripe over this display of unbridled capitalism with our tax dollars. Obviously this display of unrestrained corporatism will strengthen America by .. sending.. a BILLION DOLLARS... to Brazil...
Sucks, but since our Republic is dying from socialism, you may want to consider investing in free emerging markets to build a future for you and yours.
This isn’t a shock, we knew it before they gave them the money, it was one of the reasons I was against it.
Shush! unbridled capitalism always helps the American economy innovate. Besides that money would just be wasted on lazy American labor. Why pay real salaries like the ones made by wall street bonuses when we can hire third world labor!
Obviously, buy foreign to strengthen America. It makes perfect sense...
It’s beyond words.
I don’t know about you but I can no longer support the wholesale clearance pricing of America.
Obama’s gonna save us.
No, the bailout of GM is to help GM stay in business - thereby keeping the GM jobs in America.
The “stimulus” bill is to stimulate the American economy.
It’s two different things.
Hard to keep up, isn’t it?
Doubtful, but we’re obviously not saving ourselves by selling out our own brothers and sisters out.
And you’re SURPRISED by this??
GM is just doing what is best for the long-term interests of GM. With the CAFE standards costing BILLIONS to meet, Cap-n-trade coming, and the now hostile climate for corporations on Capital Hill, why would they wste any more precious dollars in AMERICA??
By America you mean South America right?
Your “brothers and sisters” wre sold out a LONG time ago, by Democrat Party policies that have OUTFORCED the vast majority of the American Manufacturing base through ever higher and higher mandated gub’ment and union-induced costs.
And it’s been happening since the 70’s.....
Don’t act so suprised. The Democrats have finally killed the Golden Goose, and asking for increased Golden Egg production while still strangling the goose is gonna get you nowhere....
Oh well by all means don’t “waste it” then. But don’t take it from the American tax payers either! I mean seriously the socialist in San Paulo will happily allow the execs at GM to fly in with their corporate jets as long as they’re loaded with US taxpayer dollars.
Poor vitims of corporate welfare.
Kool-aid, Henry Paulson had plenty of help from GWB, Democrats and Republicans. Your right about government failure but don’t be so quick to pick sides.
I’m beyond disgusted, I am to the point of a recall election already.
I’m beyond disgusted, I am to the point of a recall election already.
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