The need for subsidy decreases with improving business climate, says GM secretary – 25/01/2019 – Market

Carlos da Costa, Special Secretary for Productivity, Employment and Competitiveness of the Ministry of Economy, said on Friday (25) that the need for subsidies was decreasing in a more commercial environment. healthy and more productive when asked about posture. According to a report by Folha Costa told the automaker that "he must close [a fábrica] it closes" after hearing information from the Brazilian government on the situation of General Motors in the country.

on the difficulty of maintaining activities in Brazil and the resulting risks of closure of the business.

Wanted, Costa did not comment on the sentence or the case of the case. Through the press service, however, he indicated that the new economic team would focus on actions to increase productivity rather than help some companies.

"In a healthier business environment, the need for a possible Subsidies diminish, forcing companies to focus on developing their productive activities," he said.

In a statement, he added that Mr. Costa "told the representatives of the private sector, that he meets regularly, that Brazil is a more productive and more competitive country.It eliminates the obstacles that prevent them to produce more and better. "

GM is in advanced negotiations with the state of São Paulo to benefit from tax incentives, the company said to authorities and public officials. Unions at a meeting Tuesday, a few days after declaring in a memorandum to workers that they were losing money in Brazil.

Costa The Minister of the Economy, Paulo Guedes, chose to stay ahead of the special secretariat that had inherited part of the activities of the former Ministry of Industry , Foreign Trade and Services (MDIC).

He recently stated that the government would invite entrepreneurs to conversations in the executive tables with the intention of reducing the barriers to productive activity, for example by taking the weight of business. excessive regulation.

"It will be forbidden to discuss three things: subsidies, protection and more public spending," he said at the time.

The US automaker finished the year 2018 topping the country's sales of automobiles and light commercial vehicles, with sales of 434,400 vehicles, up 10% year-on-year. in 1967.

During negotiations with workers at his plant in São José dos Campos (SP) this week, GM proposed a new salary scale for the whole of the unit, a wage increase with a freeze in 2019 and a new salary scale, in addition to cuts in employee benefits, according to the local union.