GM invests US$ 777.8 million in plants in Sao Paulo
O Estado de S. Paulo
General Motors announced investments of R$ 1.4 billion (US$ 777.8 million) in the modernization and enlargement of its plants of São Caetano do Sul, in the metropolitan region of São Paulo known as ABC Paulista, and of Mogi das Cruzes, in the interior of São Paulo. Besides allowing the launch of two new cars in the Brazilian market, the investment will result in an increase of 30% of the productive capacity and hiring of nearly 1.5 thousand employees in the ABC unit.
"The investment should generate some 1.5 thousand direct jobs in São Caetano do Sul", said the President of GM for Brazil and Mercosur, Jaime Ardila, as he announced the investment at a solemn meeting at the Palácio dos Bandeirantes, seat of the Government of São Paulo. The São Caetano plant currently has nearly 7 thousand workers. According to the Executive, most of the investment will be made in the ABC region, where R$ 1.35 billion (US$ 750 million) will be invested. In the parts plant of Mogi das Cruzes, which currently employs 950 people, the investment will be amount to R$ 50 million (US$ 27.8 million) and will allow the opening of 190 job positions. The beginning of production of the new cars is scheduled for the second half of next year.
The Governor of São Paulo, José Serra, explained the investment will be made under the incentive of the program called Pró Veículo (Pro Vehicle Program), which associates the credit of the State Sales and Services Tax (ICMS) of the exports of cars to the investment in the modernization and enlargement of car plants in the State. The President of General Motors explained the plan presented to the Governor of São Paulo yesterday is part of the global program of investments of R$ 5 billion (US$ 2.8 billion) to be implemented between 2008 and 2012 announced by the maker. From that total, R$ 1.4 billion (US$ 777.8 million) will be used in the development of a new family of cars and in the enlargement of the GM plant in Gravataí, Rio Grande do Sul.
Another R$ 600 million (US$ 333.3 million) will be used in engineering expenses in the plants of São Caetano and Indaiatuba, also located in São Paulo. Funds of nearly R$ 800 million (US$ 444.4 million), already announced as well, will be intended for the production of two other new cars in the Complex of São José dos Campos (SP), in the Vale do Paraíba area.
"The definition of this new investment plan will allow increasing the productive capacity and it will also fully renew our portfolio of Chevrolet vehicles in Brazil", said Ardila. According to the Executive, another R$ 750 million (US$ 416.7 million) was invested in the duplication and modernization of the GM Engineering and Design Technological Center in São Caetano do Sul and in the testing center of Cruz Alta, in Indaiatuba. For the conclusion of the R$ 5 billion (US$ 2.8 billion) five-year plan, the application of funds in new projects, totaling nearly R$ 630 million (US$ 350 million), is yet to be decided.