General Motors to invest $2.7 billion in Sao Paulo, Brazil factories

General Motors

General Motors stated on Tuesday it would spend $2.7 billion in two Brazilian factories during the next five years, sparing them from a shakeup of the car manufacturer’s operations, a decision hailed by the governor of Brazil’s largest state.

Sao Paolo state Governor Joao Doria informed a joint news conference with GM executives that the industries in Sao Caetano do Sul and Sao Jose dos Campos had been slated for shut down last December, and stated he convinced General Motors to reverse the decision, preserving jobs.

Last November, GM stated it would cut thousands of jobs across the world and would shut down two unspecified plants outside of North America by the end of this year.

The company refused to state if its restructuring plans had referred to the two Brazilian factories, and refused to comment on whether the two plants had been slated for shut down as Doria claimed.

GM’s CEO for South America, Carlos Zarlenga, also did not directly discuss Doria’s recounting of the negotiations with the automaker.

At Tuesday’s news conference, Doria stated GM told him in a call days prior to his inauguration that it planned to shut down the plants.

“I thought it was going to be good news,” Doria stated. “But to my surprise I was told that the next day GM CEO Mary Barra would announce the closing of two factories in Sao Paulo. I fell off my chair.”

He stated he dispatched his future state finance minister to resolve the situation and landed a meeting in Miami with GM executives. He stated 65,000 employees employed directly and indirectly by the automaker would have lost their jobs without his intervention.

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