GM foresees sales of U$ 10 billion in Brazil
Valor Econômico - 04/15/2008
General Motors (GM) expects that its sales in Brazil reach US$ 10 billion in 2008, a 17% growth compared to 2007's US$ 8.5 billion. This year's better performance will be mainly pushed by the continuity of the strong rhythm of sales in the domestic market. The company expects to sell at least 600 thousand vehicles in 2008 in the national market, compared to 500 thousand units last year. "As a whole the market will grow more than 10% this year. Our idea is to grow faster than the market", said the company's president for Brazil and Mercosul (Southern Commom Market), Jaime Ardila. In order to meet this stronger demand, Ardila officially announced yesterday the building up of a new engine plant in the municipality of Joinville (SC), with initial capacity to produce 120 thousand engines and 50 thousand cylinder heads, becoming GM's third plant in Mercosul (Southern Commom Market) to produce engines. The company currently produces 800 thousand engines in São José dos Campos (SP) and 100 thousand in Rosario, Argentina. The Joinville unit will not replace São José dos Campos' engine production; rather it will represent an increase in capacity, since the company is already operating at its limit in the interior of São Paulo. Besides the new plant, GM is strengthening the production of cars in Brazil due to the strong market. In May, the third shift of the unit of São Caetano do Sul (SP) will start. It currently produces 200 thousand cars per year and has already analyzed the possibility of extending the shifts next year in Gravataí (RS) and São José dos Campos (SP).