General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program (IRA, fund)

[Woof]

General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program


By Russ Dallen
Latin American Herald Tribune staff

SAO PAULO -- General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to "complete the renovation of the line of products up to 2012."

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil.

Meanwhile, he cut the company's revenue forecast for this year by 14% to $9.5 billion from $11 billion, as the economic crisis began to cause rapid slowdowns in sales.

GM already announced three programs of paid leave, and Ardila added that GM Brazil "is going to wait and see how the market behaves in order to know what decision to take" with regard to possible layoffs.

For Ardila, the injection in Brazil's automobile sector of 8 billion reais ($3.51 billion) recently announced by the federal and state governments of Sao Paulo "has already begun to revive sales," which fell by 12% in October.

The executive said that the company will operate a "conservative" scenario in 2009 with an estimated production of 2.6 million units, and another more "optimistic" that contemplates sales of 2.9 million.

This year sales will reach 2.85 million vehicles, which represents a growth of 15% over last year.

Latin American Herald Tribune - General Motors to Invest $1 Billion in Brazil Operations -- Money to Come from U.S. Rescue Program

[HappyTexan]

Woof, this post along with mine on H1-B's in the banks just goes to show that the Corporations DO NOT CARE what happens in their own backyard. They care more about their profits.

Privatize profits and socialize debt. Hand them money and immediately they send it to another country to maximize their profits back home.

The letter writing and the voting do nothing. The citizens do not run the country anymore and haven't for a long time.

I just pray that Obama can stop this madness.

[GloryB]

Looks like we support the world on both sides of our borders.

[cdelena]

Yeah, and GM is looking for a tax break as well...


"General Motors Corp. is reaching out to the U.S. Treasury Department and Congress in hopes of avoiding a multibillion-dollar tax burden that could be attached to a new restructuring plan the auto maker is working to create by mid-February, according to people familiar with the effort.

GM, racing to submit a viability plan to the White House by Feb. 17, could face an income-tax bill of as much as $7 billion that would be associated with a plan to give much of the company's outstanding stock to debtholders, the United Auto Workers union and the federal government."


I would love to restructure my finances but need a big tax break to get money from my IRA. I bet I have no way to accomplish that.

This economic downturn has hurt a lot of people but the government has select favorites thay will help and the rest of the nation will just pay.

[Woof]

Originally Posted by HappyTexan

Woof, this post along with mine on H1-B's in the banks just goes to show that the Corporations DO NOT CARE what happens in their own backyard. They care more about their profits.

Privatize profits and socialize debt. Hand them money and immediately they send it to another country to maximize their profits back home.

The letter writing and the voting do nothing. The citizens do not run the country anymore and haven't for a long time.

I just pray that Obama can stop this madness.

Originally Posted by GloryB

Looks like we support the world on both sides of our borders.

I guess you're both right, and cdelena too.

[tallrick]

This is why the only way to get the economy on the right track is from the bottom up, not the top down. Must end bailouts, and stop inflating the currency. Deregulate so startups can thrive but regulate congress with the Constitution. Whenever funny money is created, it will prolong the dysfunctional system.