"If you need to close, close," says Guedes' secretary to GM – 25/01/2019 – Market



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The government of Jair Bolsonaro (PSL) is giving signs that it intends to resist General Motors' possible badault in order to seek tax incentives or any other type of federal support for maintain operations in Brazil.

Carlos da Costa, special secretary at the Ministry of Economy responsible for productivity, employment and competitiveness, affirmed: "If you have to close [a fábrica] shut up."

According to information provided by private sector representatives at a meeting of just over half an hour on January 4 between the Secretary and the Vice President of Government Relations of GM in Brazil, Marcos Munhoz.

At the meeting, Munhoz told Costa that the head of the US car manufacturer The United States estimated that the factories of São Caetano do Sul (Greater São Paulo) and São José dos Campos (Interior of São Paulo) were practically "unsustainable" because of the high costs.

The Executive Emphasizes For example, while the PLR ​​(Profit Sharing) reaches R $ 20,000 per employee in São Paulo, it does not exceed R $ 7,000 in Gravataí (RS).

However, the argument did not seem to sensitize the secretary, one of the main aides of the Minister of Economy, Paulo Guedes. Munhoz then went straight ahead: "We risk closing [as fábricas]". The secretary returned: "If you have to close, close it."

This statement caused unease among those present at the meeting, with GM employing more than 13,000 people in São Caetano do Sul and São José dos Campos.

The automaker did not present at the meeting any specific suits to the federal government. GM is threatening to leave South America if it does not monetize its factories in the region, especially in São Paulo.

Last week, Carlos Zarlenga, president of the Mercosur automaker, sent an email to employees about it. In his message, he indicated that GM Brazil had suffered a loss from 2016 to 2018 and that the year 2019 would be decisive.

He also reproduced the statements of the world president of the company, Mary Barra, to the American press, in which she acknowledged the possibility. A few days later, GM presented the unions with a vast program of negotiations on human rights. workers to enable it to continue to operate in the country.

São Paulo's Finance Secretary, Henrique Meirelles, also admitted that

President Jair Bolsonaro, elected with a speech to cut subsidies and open the market, did not go still officially manifested about it. According to the report, federal government technicians are strangely seeing the builder's claims, because when GM faced a serious crisis in the United States between 2008 and 2012, its operations took place in South America.

Four days after the meeting with GM representatives, Costa said at a meeting with various representatives of the productive sector that there were three prohibited topics to the government: subsidies, protection and more of public expenditure

Folha, The secretary indicated in a note that he met regularly with representatives of the private sector and that he had told the businessmen that "we have to make the Brazil productive and competitive, removing the obstacles that prevent it from producing more and better ". GM did not comment.

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