GM to invest $1 billion in Brazil to produce two new Chevrolet models
GM announced today that it plans on investing about $1 billion in Brazil through 2012 to develop a new family of models for South America. The bulk of the $1 billion will be invested in the company’s Gravatai factory in Rio Grande do Sul, which it will expand to increase production capacity.
The investment is a part of a $2.5 billion spending plan spanning from 2007 to 2012. The plan will help develop two new compact models under the Chevrolet brand and boost production at GM’s Gravatai plant to 380,000 units annually.
Most of the funding will come from the cash flow form South America. The automaker has secured a credit line of 344 million reais from local bank Banrisul, and is also in talks with two other Brazilian banks.
GM has benefited from the healthy economy in the region that has allowed millions of Brazilians to buy cars for the first time. The Detroit automaker had its best year ever in Brazil in 2008 and is making a profit so far in 2009.
The model you see here is the Chevrolet GPiX Concept, which made its debut at the 2008 Sao Paulo International Auto Show
Chevrolet GPiX Concept:
– By: Omar Rana
Source: Reuters
