GM to invest another US$ 388.9 million in the country
Folha de S. Paulo
GM will invest another R$ 700 million (US$ 388.9 million) in the plant of São Caetano do Sul, in the Metropolitan Region of São Paulo, which will be added to the R$ 1.35 billion (US$ 750 million) already announced for the same unit. Such funds are part of the R$ 5 billion (US$ 2.8 billion) in investments foreseen for Brazil for the period between 2008 and 2012. The President of the maker in Brazil and in the Mercosur, Jaime Ardila, announced GM will produce a model developed in the country in this unit as of 2012, which may, in the future, be made in two plants in Asia as well. The car will join the two sedans that will be made in the assembly line of São Caetano in the second half of next year and a pickup truck to be made as of September, which is part of the Viva family - that had in the Agile its first launching. Asked about what the segment of the new model would be, Ardila said "it is not small, but he cannot say much". The installed capacity of the São Caetano unit is already at its limit, 220 thousand units a year, in two shifts. Because of that, to include the new models, it will be required to make adjustments, which may include the adoption of the third shift or the removal of the models currently made in the assembly line of the plant (Vectra, Astra and Classic).
The total investments of the car industry until 2012 will amount to US$ 11.2 billion, well above the amount invested in the previous three year period (2007-2009), when they were at US$ 8.1 billion, according to the Anfavea (National Association of Vehicle Manufacturers). According to Ardila, the sector should end May with nearly 250 thousand cars registered - not including the 31, 233.2 thousand cars were licensed. The amount would be below that of April (277.8 thousand) and March, which holds the sector record (353.7 thousand) because it was the last month with a reduced IPI rate (Excise Tax). "It is a natural hangover due to the end of the tax incentive". On the adjustment on the price of steel, Ardila stressed out the "great impact" in the productive chain of the sector, but he did not want to calculate what would be the increase in the price of the car. "It is impossible for the makers to absorb it. It is the client who will end up paying it", he said.