It looks like Brazil will be the next big target for General
Motors, as the company plans to invest around $2.8 billion over the next five
years to create new products and technology, and also to maintain its plants.
According to CEO Mary Barra while speaking with reporters in Brazil, the
company may face some challenges moving forward, but GM says it is committed to
this market. However, Brazil's economy has declined, and already production of
the country's manufacturing output has been cut by nearly 16 percent in the
first seven months of this year alone. Because of the cuts, nearly 1,000 union
workers are in jeopardy of losing their jobs, but GM and the union are working
on a plan to make sure that doesn't happen. The union will be holding the
automaker to its earlier promise of investing in its Sao Jose dos Campos Plant.
Barra did not comment on this issue in her interview. While automakers are
receiving tax breaks in Brazil, many automakers have continued to reduce
payrolls, thanks to the decrease in demand for new vehicles. GM may have to
start putting its workers on paid leave if these issues do not right itself,
much like what Volkswagen AG did with 900 of its Brazilian workers earlier this
year.
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