Brazil is out of the world program of lay-offs
Valor Econômico 02/20/2009
All operations of South America are excluded from the plan announced this week by General Motors to cut 47 thousand jobs all over the world to restructure the operation. That is what guarantees the CEO of GM in Brazil and Mercosur Jaime Ardila. The cutting of jobs, according to the officer, should be concentrated in the operations of North America and Europe. Ardila shows he still believes he will receive the headquarters' authorization to start a new US$ 1 billion investment program. According to him, the new investment plan should be defined in the second quarter. For Ardila, the negative environment surrounding the headquarters, which says it cannot continue operating without a financial aid from the American Government, will not hinder new investments in Brazil. "It is necessary to continue investing where there are opportunities". The Brazilian operation is receiving an investment program of US$ 1 billion to be concluded until the end of 2009. At the end of last year, another US$ 500 million was announced, specifically for the plant of São José dos Campos (SP), for the development of two new cars. The restructuring plan of GM is a demand of the American Government to release financial aid to the company. Besides the 47 thousand lay-offs, the maker committed itself to close five plants in the USA. Ardila recalls the car sales projections in the world fell from 70 million to 57 million in 2009.