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

[seemslikeadream]

:wow:

http://www.laht.com/article.asp?ArticleId=320909&CategoryId=12396


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


By Russ Dallen
Latin American Herald Tribune staff

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.

[Crazy Dave]

1. They and most manufacturers have been doing that for years

They get millions in tax breaks and subsidies every year to move jobs and open factories abroad all in the name of "promoting American goods overseas"

[seemslikeadream]

3. I thought GM was broke

[MadHound]

2. Now why should we bail out these corporations?

So they can invest in other countries, ship US jobs down there, and do it all on the government's dime.

Not just no, HELL NO!

[snappyturtle]

5. I'll second that "Hell NO" ! nt

[OregonBlue]

4. Might this be the first restriction that congress discusses in the hearings? No money to be used to

bail them out in other countries but it must be used to rescue failing U.S. market?

Good thing Pelose and Reid put the brakes on this "deal" today. I'd say there are a lot of unanswered questions.

[greguganus]

6. Fuck em! Bet you won't hear 'em admit to this at the bailout hearings! n/t

[Waiting For Everyman]

7. Well they just sealed it for themselves with that.

I'm sure Congress knew about it before we did. And GM also has the nerve to build and sell cars in Brazil which get much higher gas mileage than the ones sold here do.

Acting like it'll take years to up the mpgs of their cars here is total bullshit. Those models exist right now!!!

They have one called the Chevy "Beat" for instance - not available here.

Any bailout should go to the workers instead. We should nationalize the fucking companies and sell them to the workers with that money.

[leftstreet]

10. The Chevy Beat is cool

[Waiting For Everyman]

13. And that pic shows left-hand drive! I hadn't seen that before in other pics.

So what's their problem about selling it here then - at least until a factory here is retooled to make them in the US? I forget what the mpg is, but it's pretty high - in the 40's I think.

God, I hope somebody in Congress asks that. I think I remember reading that it MIGHT be sold here in 2010 or 2012. And I saw the article on it during the gas spike last July.

Btw, that gas cost took our Federal relief checks right out of our pockets. That was nothing but a gift to oil companies.

[wildflowergardener]

8. Sorry then

Well then - sorry no money. Brazil can bail them out. That won't help the US Workers.

Meg

[codjh9]

9. I think it's the right thing to do after the loss of those Three Brazilian Soldiers. :^) n/t

[City Lights]

11. Take your tin cup elsewhere, GM.

:mad: :grr: :argh:

[JuniperLea]

12. Here you go, apologists!

All you creeps who have called me and others un-American today and for the past week! Read it and weep, dumbasses! This is what the rest of us were trying to warn you about!

Jesus Mary and Joseph! I'm so fucking sick of ignorance!

[madokie]

17. I'm with you on that

jebus cris on a radiator cap anyway

[file83]

14. So many of us lefties saying "Give them $$$" to protect the unions....

...but what they don't realize is that GM is planning on dismantling the unions anyway by shifting their entire operations overseas.

And they want to do this WITH OUR MONEY!!!

Fuck this, and fuck GM. If this country goes to hell in hand basket, well then, so be it.

Things need to get worse before they get better. But if we give them the bailout, it'll just get worse without ever getting better.

[madokie]

18. I'm convinced the bailout will only prolong the agony

fuck a bunch of whiney suck ass ceo's and their fucking jets

[old mark]

21. This is the automakers usual argument: the poor workers.

Like they care about the workers welfare, pensions and benefite, and just gave them so much out of the goodness in their hearts.

We need to look not only at the company management side of this, but at the union executives and big shots. They are by no means the decent and wonderful people they like you to think they are.

I used to be a union steward, and have no love for either side in this.

mark

[struggle4progress]

15. Da hell widdem

[madokie]

16. Protecting investments is the operative words here

and thats what has us in such a bind right now. protecting investments

[HughBeaumont]

19. I've always said that bailouts are just another way of paying for our own firings.

The greed and needs of the ridiculously wealthy is going to make this economic transition painful, all because they're not even remotely willing to make sacrifices or play ball even an INCH.

[raccoon]

20. K&R. nt

[tosh]

22. K&R #20... and THANKS for posting this!