In a "critical moment", GM of Brazil must pay the investments of 2011 – 01/20/2019 – Market



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The memorandum addressed to the constructor's employees by Carlos Zarlenga, president of General Motors Mercosul, shows the fragility of the company in this period of timid recovery in Brazil and crisis in Argentina.

Despite its leading position in the market since 2016, the executive told employees that after the losses suffered in recent years, the operation had reached "a critical moment that requires sacrifices from all". The parent company put pressure on the South American subsidiary.

GM began product renewal in Brazil six years ago by launching the Chevrolet Onix. The automaker was going through a difficult period in the United States and was receiving badistance from the Obama administration after its bankruptcy on the brink of bankruptcy.

However, not having the resources to invest heavily in new platforms, the matrix had to be saved at that time … its products are based on the old European Corsa.

This was a common solution on the Brazilian market, but it needed a large sales volume to make the operation profitable.

Onix, Prisma, Spin and Cobalt had good sales investments, but the base of comparison became superficial from 2014, when the market held a significant market share.

The Brazilian company General Motors did not have a higher value-added product that sold well despite the recession. This car would be a compact national utility, which has not been released.

The builder experienced a significant increase in the number of vehicles it was able to sell. problems persist with the inactivity of the São José dos Campos plant (inside São Paulo) and the low volume of its only more economical national pbadenger car, the Cruze.

General Motors is about to renew its product range globally with a unified platform, a project already announced by the parent company.

Brazil continues to play a leading role in this development, even though the engineering and design services of the brand have lost their prestige. . However, it is still necessary to pay for the investments made during the last renewal of the vehicle, which began between 2011 and 2012.

If the results are not satisfactory this year, Brazil risks to remain in disarray compared to Other markets with similar characteristics. GM operates.

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