GM Investing $1B in Brazil for New Cars

(CBS/AP)  General Motors announced plans to invest $1 billion to develop two new car models in Brazil.

The president of GM's operations in Brazil and the Mercosur countries said it is GM's biggest investment since the onset of the global financial crisis.

Jaime Ardila says about 50 percent of the money will come directly from GM Brazil while the rest will be borrowed.

One new small car and one medium-sized car will be developed at the Gravatai plant in southern Brazil and are expected to be in production by 2012.

Ardila says Wednesday GM Brazil has avoided the problems of its parent unit in the U.S. because of strong demand in Latin America's largest economy.

GM sold 580,000 vehicles in Brazil in 2008 - its most ever.

GM emerged from bankruptcy protection last week, with CEO Fritz Henderson announcing the "business as usual was over" for the automaker.

But GM, whose 40 days under court supervision was far shorter than anyone predicted, faces the worst auto sales slump in a quarter-century.

The company plans to cut 20 percent of its salaried U.S. workforce by the end of the year, including around 35 percent of it's executive employees.

The revamped carmaker will focus on improving customer relations. The company is launching a "Tell Fritz" Web site to allow owners and the public to share their concerns with senior management, and Henderson plans to go out on the road every month.

Henderson also said GM will partner with eBay in California to allow consumers to bid on vehicles just as they would in a typical eBay auction. They could also choose a "Buy it Now" option in an experiment to make car shopping easier. Dealers would still distribute the cars.

"As a culture, General Motors needs to be prepared to experiment and adjust," he said.

[retired_steelworker]

Will isn't that a kick in the pants. As a tax payer I want GM to give back all monies given to them to save GM. If Obama supports this kind of a program. Then he too needs to step down get on the boat and get out of my country.

[whitemale08]

Bloomberg.com is reporting that CIT (large insurance firm for small business) is a ticking time-bomb full of worthless derivatives and credit-default swaps that have been 'shorted' by Goldman Sucks.

A rush to bail it out with tax payer money is expected within 24 hours to pay off Goldman Sucks counter-party positions.

THE AMERICAN SUCKER....YOU GOTTA LOVE 'EM!!!

[andylance1]

GM Latin America has a much larger variety of smaller and cheaper cars with economic, attractive and utilitarian attributes. That is why they are selling. When you're hot you're hot and when you're not you're not.

GM North America better wake up and offer the same vehicles here or Fiat is going to really take over market share big time. Don't forget about turbocharged diesel engines either.

[whitemale08]

Boy, that 'giant sucking sound' sure is getting louder and louder.

Globalization is what the American SUCKER chose to embrace.

NOW LIVE WITH IT, SHUT UP AND FLIP BURGERS FOR A LIVING!

YOU'RE NOW LIVING IN A 'KNOWLEDGE-BASED' ECONOMY --- SUCKER!

[chaseangus]

"Tell Fritz"! What a bunch of yahoos. Why is he asking the American public squat all? They don't know squat all. Firing 35% of the management employees, I suppose, is what Fritz thinks the American people want. And the AP's are so stupid they get off on executives being fired. The AP's forget someone's going to pick up the tab for their unemployment. And the executives won't have money to spend in the economy.

[hungry1968-16]

"The company plans to cut 20 percent of its salaried U.S. workforce by the end of the year, including around 35 percent of it's executive employees."






They can take American taxpayers money, stiff their America based creditors, screw their American workers, all while benefiting South America.

And people will STILL cry to me because I own a Toyota, and make the claim that I am turning my back on America, by NOT buying a GM POS?!?!?!

[AroundtownVW]

No American workers. I won't be buying GM products any more.

[AroundtownVW]

No American workers producing these cars. Guess I won't by another GM product.

[AroundtownVW]

No American workers producing these cars. Guess I won't by another GM product.

[anti-global2]

nobody is going to buy GM. Any company that took a bailout or is partially owned by the govt' should be boycotted.
It is not what you can do for your country, it is what your country can do for you (since your tax dollars fund it). If it isn't working for you don't work for it, work against it.