GM Brazil Not Swayed By Detroit Cutbacks; New Models Coming
27 April 2009 - 6:28PM
Dow Jones News
General Motors do Brasil Ltda is not swayed by cutbacks at
corporate headquarters in Detroit and will invest $500 million in
new models launching as early as September, a company spokesman
said Monday.
The money comes from General Motors Corp.'s (GM) Brazilian
subsidiary and not from the coffers of the U.S. General Motors,
which announced Monday that it will lay off 21,000 jobs and
eliminate its Pontiac brand by the end of next year.
By comparison, GM in Brazil has around 24,000 employees. The
$500 million will go to General Motors do Brasil's new car project,
called Viva. GM said that a few models will be launched, but has
kept the new models under wraps.
GM is one of Brazil's Big Three, which include Volkswagen AG
(VLKAY) and Fiat SpA (FIATY) as market leaders.
Over the last three years, Brazil has become a top market for
the GM Chevrolet brand, trailing China and the U.S.
-By Kenneth Rapoza, Dow Jones Newswires; 5511-2847-4541;
kenneth.rapoza@dowjones.com