GM Invests $1.3B in Brazil Auto Production

General Motors will invest $1.3 billion toward vehicle production in Brazil, an announcement that followed the automaker's tentative plans to invest more than $2.73 billion in the Brazilian market over the next several years.

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February 15, 2019

GM Invests $1.3B in Brazil Auto Production — GM is investing $1 billion at its São José dos Campos plant in Brazil, which will be used to help the plant produce the upcoming Chevrolet S10 mid-size pickup.
Photo of the 2019 S10 courtesy of General Motors.

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GM is investing more than $1 billion at its São José dos Campos plant in Brazil, which will be used to help the plant produce the upcoming Chevrolet S10 mid-size pickup, according to GM Authority. The automaker reached an agreement with workers of the plan to reduce labor costs and allocate production resources to the factory.

However, in January, the automaker warned Brazilian employee's sacrifices from new investments would need to be made to have the company return a profit, according to Reuters.

Earlier in February, the automaker said it was negotiating plans to invest $2.73 billion in the country between 2020 to 2024, according to Reuters.

Auto production in Brazil has improved over that last several years; the Brazilian automotive industry production increased to 2.4 million vehicles in 2017. Domestic automotive production grew 15.2% and sales climbed 14.6% in November 2017 compared to November 2016.

Topics:Brazil Chevrolet Global Vehicle Production Global Fleet

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