GM starts producing new national cars in July – 01/30/2019 – Market



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Despite losses it claims to have accumulated in Brazil in recent years, General Motors is preparing to launch two new compact cars this year.

These will be the first models of the GEM family ("Emerging Global Markets"), which will arrive in stores in the last quarter of 2019. Production of the prototypes will begin in July at the Gravataí plant in Rio Grande. do Sul. the vehicles will be the new generations of the Onix sedan and the Prisma sedan.

The builder does not confirm the launch of the cars and says that he will not comment on the subject.

Adjustments made to the plant as a result of an investment of 1.4 billion R & D are completed. The launches will share a new platform and will be larger than the models.

When preparing for production, General Motors is attempting to renegotiate an agreement concluded in 2017 with the Gravataí union, which, according to Edson Dorneles, the entity's legal director, is valid until March 31, 2020.

Dorneles states that the workers made concessions in favor of investing in the plant. There was no readjustment of wages in 2017 and, the following year, the increase was set at 60% of inflation.

This adjustment would be 100%, with an additional payment of R $ 12,740 as profit-sharing.

General Motors asks employees to renegotiate the bonus amount. According to the union, this proposal was not accepted.

"We already have this amount in our pockets, but today there is news of great repercussion, namely that the parent company does not want to pay for the losses, but promised investments of 13 billion dollars Gravataí represented just over 10% of this value, "said Dorneles.

The unionist refers to the investment plan announced by the American manufacturer. The total would be 13 billion rubles between 2014 and 2020. At least $ 4.5 billion was invested up to last year, but an unspecified amount still needs to be invested in product renewal .

Carlos Zarlenga, president of the company at Mercosur in May 2018, had announced the launch of 20 new cars by 2022. The program includes models to be manufactured in Gravataí

Officials were waiting for it. announced new investments, but were surprised by the memo sent by Zarlenga two weeks ago. The text signed by the executive affirmed that after heavy losses in the past three years, the operation in the country had reached "a critical moment that requires sacrifices of all".

Zarlenga refers to comments made by GM's CEO,. In a presentation to investors, she said the parent company would not continue to use capital to lose money.

The automaker has conveyed to unions a series of actions it intends to conduct in its restructuring process. The list includes liberalizing subcontracting in the São José dos Campos plant (State of São Paulo), implementation of the intermittent route (per hour or per day) and increased workload for new employees from 40 to 44 hours.

Legal director of the Gravataí union, the idea of ​​the company is to first conclude the agreement with the unit of São José dos Campos, then renegotiate with the other units. In addition to automotive plants, the company produces engines in Joinville (SC).

The builder is also looking for government support. São Paulo's finance secretary, Henrique Meirelles, admitted that he was studying the possibility of bailing out GM in anticipation of the ICMS loan.

The federal government has been harder in the negotiations. Carlos da Costa, special secretary for productivity, employment and competitiveness of the Ministry of Economy, said that "if you have to close [a fábrica] you close" after being informed of the possibility of the brand shut down production in national units

One of the brand's problems is the added value of its products. Although the market leader since 2016, the best-selling Chevrolet cars cost less than $ 60,000.

The most profitable domestic models of the brand are the pickup trucks S10 (from 106,000 rand) and luxury Trailblazer (187,000 R $), the only two vehicles currently produced at the factory of São José dos Campos

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