General Motors (GM) announced today, July 18, that it will be investing US$ 500 million in its operations in Argentina and Brazil. The funds will be used to create a new family of small vehicles for emerging markets, and to expand the GM technology center in Brazil.
The new family of vehicles will be manufactured in the two South American countries. The investment should be used for factory improvements and modernization in the cities of Rosário, in Argentina, and São Caetano do Sul, in the southeastern Brazilian state of São Paulo.
The expansion of the technology center in Brazil includes the construction of a new building for engineering in São Caetano do Sul, purchase of new equipment, and improvements in infrastructure.
"In the face of the marked improvement in the economic situation in Argentina and Brazil, we are starting a new phase of investments aimed at supporting ongoing growth in Latin American and around the world," said the chairman and president at the General Motors Corporation, Rick Wagoner, in a press release issued by the company.
GM's sales in Latin America have been increasing. In the first half of 2007, the company's sales in Brazil and in Argentina have grown, respectively, by 18% and 16%, compared with the same period of last year.
Both the sales of GM Argentina (75,000) and GM Brazil (410,000) reached all-time highs in 2006. The company is the world's leading vehicle manufacturer.