GM to invest $1bn in Brazil auto industry
US car manufacturer General Motors (GM) is to invest $1 billion (£608.4 million) on developing a range of new cars in Brazil as part of an expansion in the country.
The company’s Brazilian subsidiary, which is financially independent of the US firm, will be behind the investment and the new vehicles are set to hit the market by 2012.
Jaime Ardila, head of GM Brazil, said that the majority of the money will go towards expanding a factory in the southern state of Rio Grande do Sul, with the aim of tripling production.
Half of the money will come from GM Brazil profits and the remainder from state banks, he added.
Mr Ardila met with president Luiz Inacio Lula da Silva to discuss the plans prior to announcing the investment.
Car sales in Brazil soared by 21.5 per cent between May and June this year, hitting a record level of 300,174 units, according to figures from the National Automotive Dealership Association, Fenabrave.
