US government funds Brazilian GM plants?
I have no idea how this transfer would be done if the funding happens for high mileage gpm and alternative fueled cars ($25 billion), or if it is accurate as an idea. Not having read the bill I would not know if money is restricted to the US. It does make sense to fund the best plants and technology from GM’s point of view, and Brazil is clearly ahead.
But I do know it is probably easier for the financial companies who are not being ‘micro-managed’. I remind you of cactus’s post on welfare.
The Latin American Herald Tribune says the president of GM Brazil reveals plans:
General Motors (GM) 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.