General Motors announces negotiations to invest $ 2.73 billion in Brazil until 2024



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General Motors Co announced on Saturday that it is negotiating the "feasibility conditions" to invest $ 10 billion reais ($ 2.73 billion) in Brazil between 2020 and 2024, after warning last month that new investments would depend on return to profits.

The automaker also announced the completion of a 13 billion reais investment plan between 2014 and 2019.

"As market leaders, we take on the responsibility of facing the competitiveness challenges facing the sector in order to make a sustainable future possible for our business and an appropriate return to shareholders," said Carlos Zarlenga, Managing Director of GM Mercosul. , in a report.

"We continue to work with the unions, the dealers, the suppliers and the government to allow this new and additional investment of R $ 10 billion in the Sao Caetano do Sul and Sao Jose dos Campos factories," he said. he adds.

The Valor Economico newspaper on Friday announced that General Motors Co was in talks to invest $ 9 billion reais ($ 2.5 billion) in the state of Sao Paulo over the next three years, in exchange for $ 30 billion. tax incentives.

In recent weeks, GM has warned its employees in Brazil that "sacrifices" would be necessary for the company to regain its profits in the country, raising concerns about dismissals or closed badembly lines. Last month, the automaker told officials and unions that it was in talks with the state of Sao Paulo about tax incentives.

Valor said GM would invest in its product line up until 2022, and that the following year, it would begin to benefit from tax cuts. Valor, who also said that GM's losses in Brazil last year totaled 1 billion reais while it held a leading position in the country's market, did not specify the amount exact that GM would expect to generate in terms of tax incentives.

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