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Home / Business / General Motors says in conversations to invest $ 2.73 billion in Brazil by 2024

General Motors says in conversations to invest $ 2.73 billion in Brazil by 2024



The GM logo is seen at the General Motors factory in Sao Jose dos Campos in Brazil on January 22, 2019. REUTERS / Roosevelt Cassio

SAO PAULO (Reuters) ̵

1; General Motors Co said Saturday it is negotiating "feasibility conditions "to invest $ 10 billion ($ 2.73 billion) in Brazil from 2020 to 2024, having warned last month that new investments will depend on returning to profit.

The automaker also said it is completing an investment plan of $ 13 billion between 2014 and 2019.

"As market leaders, we take responsibility for meeting the challenges of competitiveness that the industry is experiencing to make a sustainable future possible for our businesses and the right returns for the shareholders, says Carlos Zarlenga, GM Mercosul's CEO, in a statement.

"We continue to work with unions, dealers, suppliers and government to enable this new and further 10 billion reais investment in the São Caetano factories. do Sul and São José dos Campos, "he added.

Newspaper Valor Economico reported Friday that General Motors Co was negotiating to invest 9 billion reais ($ 2.5 billion) in the state of Sao Paulo during for the next three years in return for tax incentives.

In recent weeks, GM has warned its employees in Brazil that "victims" would be needed for that the company should return to profits in the country, and maintain concerns about layoffs or closed assembly lines. Last year, the car manufacturer announced public officials and trade unions that were in talks with the Sao Paulo State on tax incentives.

Valor reported that GM would invest in the product line until 2022, and then the following year, the company began to enjoy tax cards. Valor, who also reported that GM's losses in Brazil last year were 1 billion reais despite being the country's market leader, did not indicate the exact amount GM would expect to generate in tax incentives.

Reporting by Gabriel Stargardter; Editing Alistair Bell

Our Standards: Thomson Reuters Trust Principles.

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