General Motors' Brazilian subsidiary said on July 15 it is to invest one billion dollars to expand operations. The company will develop nine new models that would hit the market from 2012 as well as expand a factory in the southern Rio Grande do Sul state to triple production.
The money would come from within Brazil: half from profits accumulated over the past few years and the rest from loans from Brazilian finance companies.
The head of GM Brazil, Jaime Ardila stressed that the subsidiary was not involved in the restructuring of the U.S. parent. "We have financial independence and also product independence" with their own design team, he said.
Brazil along with China has been key to General Motors survival as a brand worldwide. Vibrant sales in both those countries kept the group afloat as it went through its painful restructuring.
Fiat in May reportedly tried to buy General Motors Brazil but was unsuccessful. Fiat bought control of Chrysler instead.
Copyright Agence France-Presse, 2009