GM Investments in Brazil

12/03/96

South American Business News reports that General Motors announced plans to invest $1 billion in Brazil. The investment will be used to expand production capacity at its plant in Sao Jose dos Campos by 25%, to build up a new gears and clutches plant, and to import cars from the unit it's constructing in Rosario, Argentina. A site for the gears and clutches plant has not been selected.

GM has put other investments in Brazil on hold until it can resolve its production bottleneck and recover the market share it lost to Volkswagen and Fiat. The plant in Rosario, Argentina will make 100,000 Corsa models annually, which should be enough to supply Argentina and Brazil.

Paul Dever -- The Auto Channel