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The GM logo is visible at the General Motors plant in Sao Jose dos Campos, Brazil on January 22, 2019. REUTERS / Roosevelt Cbadio
SAO PAULO (Reuters) – General Motors Co announced on Saturday the negotiation of "feasibility conditions" to invest 10 billion reais ($ 2.73 billion) in Brazil between 2020 and 2024, after warning the month last, that new investments would depend on the 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 enable a sustainable future 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, dealers, suppliers and the government to enable this additional investment of R $ 10 billion in the São Caetano do Sul and São José dos Campos factories," he added. .
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 amounted to R $ 1 billion while it was the country's market leader, did not specify the exact amount that GM hoped to generate as tax incentives.
Report by Gabriel Stargardter; Edited by Alistair Bell
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