General Motors to Invest $1 Billion in Brazil Operations

Source: Latin America Herald Tribune

SAO PAULO -- General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to "complete the renovation of the line of products up to 2012."

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil.

Meanwhile, he cut the company's revenue forecast for this year by 14% to $9.5 billion from $11 billion, as the economic crisis began to cause rapid slowdowns in sales.

Read more: http://www.laht.com/article.asp?CategoryId=12396&ArticleId=320909

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Why are we funding jobs in Brazil?

eom

they were against the bailout before they voted for it......

Let alone whole cars.

:(

Compact, four-door, four-cylinder bio-diesel fueled pickups? Brazil and the rest of the world has 'em, but not us.

How about we change CAFE standards so that every car company's US offering has to be as or more fuel efficient than the models they sell in any other country. Ford, Toyota, etc., they all do it.


(Chevy Colorado diesel, Thailand)


(Ford Ranger, Australia)


(Toyota Hilux, Asia)

Instead of whining that "American's need their pickups," how about we get a clue that the same companies sell us V-8s w/MPG in the single digits know the rest of the world won't buy 'em, so they don't sell them there. Instead, they sell cars that get 3-4 times the mpg.

How about no more government money (that includes local tax breaks--bribes--from you anti-union red state Republicans, too) unless you give us the best you've got (*and* build 'em here).

Sure in a truck they get 15 or 16mpg, but in a lightweight car they can easily average in the 20's.

In Brazil.

I'm so happy that my tax money is going to help create Brazilian jobs.

This is unfucking believable.

to export to the US which I don't think is the case. It produces for the Brazilian market.

Please don't hate me, mmmkay?

They can do everything " some place else for cheaper" and meanwhile there is nothing here at home.

they are seeking Union concessions here

http://www.time.com/time/business/article/0,8599,1875057,00.html


k n r

You got that right - What are they thinking? We are dying here and GM is taking 1 Billion to Brazil???

Here is the link if you want to chime in!

http://www.whitehouse.gov/strongmiddleclass/

Say what?:wow:

money!

Somebody is throwing shit in the game. This same item was posted two months ago. Same story, words, same everything. And i'm a 100% convinced that this is completely false. Just doing a cursory search on Google News yielded the following results:

The Socialist World Worker reports that GM just announced 802 layoffs at it Sao Paulo plant even though it broke various sales records and got a ton of tax breaks and was profitable enough to send money northward to Detroit. No mention U.S. bailout money though.

Just123.com reports that GM's sales in Brazil were up 10%, where they sold 549,000 units. No mention of them getting money from anywhere.

Bloomberg reports that GM will layoff 1633 workers at it's Sao Caetano do Sul plant because of slowing sales. Again, no money from the U.S. seems involved.

The Latin Business Chronicle reports that the LAAM is the only region in which GM was profitable in the last quarter and that those 802 laid off employees i spoke of earlier were protesting because they got sacked and wanted their jobs back. Still no mention of US bailout money.

This story, as i said, has been kickin' around for the last two months. The original publication date, as far as i can tell, was 11-18-08. Right about the same time that GM, Ford and Chrysler went to Washington. Before this, no one had even heard of the Latin American Herald Tribune. Somehow it's suddenly become a gold standard in reporting? A paragon of truth? Why aren't more major organizations reporting this? Ask yourself that. I obviously do not know how to post links here, if i did i'd have done so. However, go do a Google search and you'll find the same stuff i did and if you look at the posting from Autoblog.com dated November 22. 2008 you'll see that this story has no basis in fact. You'll also find that this same nonsense was posted at Freerepublic as well.Like i said somebody is just throwing shit in the game.

And this 'Latin American Herald Tribune' looks to be uh...interesting. Just the bio on the 'President and Editor' raises red flags.

By the way, it's easy to do links here. Just type in (or copy/paste) the link address.

Here's a link to the Prez bio:

http://www.laht.com/article.asp?ArticleId=318362&CategoryId=13282

"Russ Dallen has worked for a number of leading publications all over the world. He worked as a foreign correspondent for Newsweek in London and an editor of the Journal of International Affairs in New York. He cut his teeth in the newspaper industry as a paper-boy for the New Orleans Times-Picayune in Gulfport, Mississippi at the age of 13. Since then, he has published numerous award-winning journal, magazine and newspaper articles and editorials, including in Newsweek, The Daily Telegraph (London), The Christian Science Monitor, The Daily Herald (Biloxi, Mississippi) and The Oxford Eagle (Oxford, Mississippi). He is author and contributing author of several scholarly works, including 4 books."

Morgan Stanley, Oppenheimer, etc. And when a Capitalist Banker-friendly dude like that serves on Venzuelan/American "media" committees, it seems weird.

Plus this gem: As Editor-in-chief of The Daily Journal, Dallen took a lead in assisting in the spread of English-language, (with its associated culture and laws)

wtf does that mean?

:shrug:

in Brazil:

http://www.autoblog.com/2008/11/22/gm-not-sending-any-bailout-money-to-brazilian-operation

But it's not bailout money, which (imo) is a distinction w/o a difference, since GM's a centrally-managed multinational. However, GM's laying off in brasil too, though they built a state-of-the-art plant there in 2000.

As for US banking ties to Venezuela, they go back at least 100 years. Who knows exactly what the deep politics are, but fairly certain the standard public storyline on chavez/venezuela/gm/banking crisis/oil is bullshit.

If some faction of international bankers is publicizing the fact that GM's expanding in brasil & asking for bailout $$ at home, why might that be?

Several scenarios come to mind...but ordinary people can only guess which is true.

COMPETE AGAINST THEIR ASSES AND WIN!!!

What a fucking disgrace! This shit pisses me off, becuase I know so many people out of work.

And now money we could have used to help people in hard times is going to make plants overseas so more of us will be out of work.

Brilliant!

One brazillion dollars???

ultimately a job killer, even though it may feel good to make them pay more.

Paul Krugman: "Now, the thing you have to realize about corporate taxes is that the statutory rate — the rate you pay after allowed deductions and all that — means very little. That’s because corporations have lots of potential deductions — and can hire the very best accountants to find them, and lawyers to justify them. So any time you see a table that compares the nasty 35% US rate with other countries, you know you’re being snowed.

"A much better indicator is the amount of taxes corporations actually pay. From OECD data (behind a paywall, I think, unfortunately), I get the following for percentage of GDP paid in corporate taxes in some major economies, in 2005:

Canada 3.5
US 3.1
Japan 4.3
France 2.8
Germany 1.7
UK 3.4."

We will no longer be the most powerful country in the world because of the greed of the elite. They could care less just so they get their dough...Where is Karma when you need it.

First, I agree, this described most "lean" of all automobile assembly plants operation should be run without that money, absolutely.

But I want to be enlightened- Is it true that the UAW has no room in their agreements for their workers to co-exist with other companies who make things like Fisher Body used to in Detroit, but on site. So called "supplier integration" in that video looked really efficient, and must make these plants run "lean".

Would anyone explain the pro's and con's on this supplier integration thing where you basically have an agreement that your suppliers have a spot to manufacturer, send their assembly down the pike so that it is efficiently tied in to the car assembly?

Thanks in advance.

http://www.zimbio.com/Business+in+China/articles/17/GM+Invests+250+Million+China+Green+Research

GM to continue to invest in China:

http://news.alibaba.com/article/detail/business-in-china/100026817-1-gm-stick-china-investment-strategy.html

From GM China's website: http://www.gmchina.com/english
"GM takes seriously its responsibility to improve the lives of China's citizens by using its resources to contribute to their social welfare, and to build a cleaner, safer and healthier environment. "


So, tell me again why we are bailing out GM?

i think there aren't really any "national" car corps anymore.

It is my money!!!!!!!!!!!!!!

but that something smells. This is what smells. They are laying off not because they have to but because they are using the economy as an excuse and shield to dump the U.S. citizens jobs for the cheaper labor of another country. They will still be able to be as greedy as hell and get their bonuses at our expense. Very worst expense of Americans having no jobs. This smells throughout the Universe.................And it was so obvious to me that day after day thousands of jobs being zapped. Watch the others who have dumped will follow GM.......

factories and conditions in our country.

Especially when it is given as a bail out to keep these companies going.

Either that, or that or the company has just sold us that much of their stock. Thus, we the people would become majority share owners.

I'm willing to bet that the people would vote to over turn the decision to send the bail outs and loans out of the country to fund jobs elsewhere... (Except, unless, of course, industry lobbiers get the jobs as the people's representative. :eyes:

I copied your message and sent it to my Senator Durbin and my Rep. in Congress with the heading: How does this make you feel?

Plus I was not the one to say bail them out. I said they have sunk themselves, let them go.
I wouldn't buy Ford or Chrysler ever again either.
dc

Our betters at CorpoCongressCEO-KleptoKrats., Inc., have merely rebalanced our investment portfolios for us, by allocating a portion of our dollars to an emerging market, namely Brazil.

An example of sound financial planning that will reward us all handsomely in our "Retirement Years."*

* Past results do not guarantee future performance; or a retirement, for that matter.

All investments carry risk (for you, the Little Guys, also known as Chumps, Suckers and Bag-Holders; Big-Shots make dough on the way up and on the way down; not to mention sideways.)

See prospectus for further details; the prospectus is not available to Little Guys; hey, just trust us; when have we ever steered you wrong before?

:banghead:

This is getting ridiculous. But every time these corporate fat cats stick it to us in eye the government just goes ahead and gives them more money. Mark my word, GM will be back for more billions and they will probably get it.

this is an article from Nov.
http://wordpress.com/tag/gm-brazil-mercosur-jaime-ardila /


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4514151

GM not sending any bailout money to Brazilian operation
by Sam Abuelsamid on Nov 22nd 2008 at 8:49PM

A story has surfaced on the Latin American Herald Tribune (a publication we hadn't previously heard of) stating that General Motors was planning to invest $1 billion in it's Brazilian operations to update its South American products. So far, that part of the story is true. However, that's where the truth apparently ends. The story goes on to say that GM plans to use money obtained from the proposed government bailout package to pay for the Brazilian investment.

We contacted General Motors to check on the story and spokesman Richard James replied, "I don't know if something got lost in translation but Jaime Ardila, President of GM Brazil did NOT say that funding for GMB projects would come from the US financial aid package. GM Brazil has $1 billion in investments that have already been approved but they will be financed by our Brazilian operations through local sources."

Just as Opel (GM's German division) is going to the German government for assistance, GM Brazil-Mercosur is raising capital in that country. During the congressional hearings this week, CEO Rick Wagoner also indicated that GM operations in different regions are each funding projects locally in response to a question about a recent expansion in Russia. It appears that any money that GM gets from the US government will stay here.

http://www.autoblog.com/2008/11/22/gm-not-sending-any-bailout-money-to-brazilian-operation/

the first total of 700 Billion now this pisses me off beyond belief they should have to give back everything they received immediately. How in the world is that going to help the good old USA WTF ? The CEO's Of GM should be arrested for false pretense and I don't care how they spin it all of their overseas operation should be shut down now until they get it straight here. Any and all of that supposed bail out money should stay in the us it is tax payer money-right? how dare they, those criminals. My god have they stolen from us. By the way where is Hank he's just gone now he took 700 billion dollars that he said was needed Right Now and now he is just out of it all How lovely for him. Thanks for letting me rant. I am sitting here with no job and no unemployment and I read this and it just kills me

I posted this because it was originally in LBN and since the article was over well over 12 hrs old we moved it. Just wanted to give a bit of background. :hug:

:grr:

any ideas ? Shouldn't it be mandatory that they shut down any and all operations outside of the us until they fix their us branches or is it just me

and let them sink or swim. Their choice. If they hadn't outsourced so many jobs maybe people would be able to buy their products.

time. This "bail out" of funds should only be used in the US period-right?

There should have been conditions that OUR money be used here in THIS country.
This is bullshit.
The government should have taken the money they gave the banks and the money they gave GM and let US stimulate the economy.

1. House sales would have picked up
2. Car sales would pick up
3. People that couldn't afford to send their kids to college...could
4. Retail sales would have picked up
5. Homeless people could have purchased homes

The car business wouldn't have needed the money because people would be buying, the banks wouldn't need money because people could have paid their bills off and invested, it would have been a win-win for everyone.

Instead--billions of OUR dollars lined fatcat pockets who (just as many thought) would do nothing to help the country or us as individuals. We are right back at square 1--minus several billion dollars!:mad:

Well, what the fuck are you going to do about it and when in the fuck are you dumb fucks going to learn?

You will always win elections, when you place people above corporations. Rule #1: Corporations will fuck over the American people, whenever they get a chance. The people stood up for you... Now where in the Hell are you when it is time to stand up for the people?

I don't really believe this but since the usual bullies are mysteriously absent from this thread, I thought I'd be courteous and spread their talking points for them.