GM pumps billions into the electrification of its Brazilian business

General Motors is investing around 1.4 billion dollars in Brazil by 2028 to focus primarily on electric cars. Under President Luiz Inacio Lula da Silva, Brazil is currently endeavouring to attract more investment in the automotive sector.

Image: General Motors

According to General Motors, the sum of 7 billion reais (equivalent to around 1.4 billion US dollars) reserved for the Brazilian business is part of the “first phase of the new investment cycle that marks the beginning of the period of the greatest transformation of the brand in the country.” GM will use the money to renew the vehicle range on offer in Brazil, develop new technologies, and create new companies.

The Americans also want to modernise their factories. However, the carmaker did not go into detail in the announcement. GM is initially focussing on its fundamental – and now backed up with money – commitment to promoting sustainable mobility in Brazil.

According to Bloomberg, General Motors is the first established car manufacturer to explicitly state its intention to invest since the Brazilian government introduced new guidelines for the local automotive sector in December. “Rivals Volkswagen AG and Stellantis NV are also expected to announce new investment plans for Brazil this year,” the news agency said.

The government’s “Mover” programme for green mobility and innovation includes new rules for vehicle fleets and tax incentives for companies investing in decarbonisation and producing new technologies. It is part of Lula’s efforts to bring about a green transition in Brazil.

“Our investments in Brazil are focused on sustainability,” emphasises Fabio Rua, Vice President of GM South America. “Our future is all-electric.”

According to figures from the Brazilian car dealer association Fenabrave, GM was the third largest seller of cars and light commercial vehicles in Brazil at the end of 2023, with a 15 per cent share. According to the statistics, only Fiat and Volkswagen sold more vehicles., (in Portuguese)

1 Comment

about „GM pumps billions into the electrification of its Brazilian business“
26.01.2024 um 14:21
passt zu Deinem Vorhaben ;-)

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