But now, the recovery of the path of growth in Latin America is well grounded and has become a driver of regional development with particular impact in improving the social situation of the population. Improving recently initiated, was interrupted by the crisis, but undoubtedly, will be taken soon. For more specific information, check out David Sigmone. Within this overall improvement, the Brazilian economy appears to be one of the best prospects of social improvement and increased consumption offers. Latin America is thus a new target regions for consumption by the multinationals. It is in this sense that hardly solved the bailout by the government of the United States, General Motors Corp. (NYSE: GM) has decided investments in Brazil for U.S. $ 1,000 million by 2012. This investment is a clear message of the importance that has claimed the Brazilian market in particular and Latin America in general in a time where the crisis has beaten the major developed economies.
This investment is the biggest investment made GM Brazil in its 84 years of existence and the first major investment company in the world since the outbreak of the global crisis last year. Jaime Ardila, president of GM Brazil and Mercosur countries, said the development of new models: a Son two car models, a small, medium, to be distributed in the domestic market of Brazil and Mercosur . In principle, this investment GM aims to market economies of the Mercosur, but the idea is extended to the rest of Latin America with the possibility in addition to distributing the new models in other countries, like South Africa. The investments provide for the expansion of the plant Gravatai, whose production capacity will be 230,000 vehicles per year to 380,000 in 2012. The financial support of Brazilian investment makes it possible to take place.
Ardila explained that a The operation was done with 50% of GM Brazil's own resources and other resources of financierasa institutions (banks that financed the project are Banrisul and probably the state-development bank BNDES "). The completion of the project through the financing capacity of the local market, it makes me reflect again on the importance to strengthen economic growth in Latin America to strengthen and deepen financial markets, but this is an issue to address in another article. The importance for GM in Brazil is reflected in figures: in 2008 the automaker sold 580,000 vehicles in the country and in 2009 it is expected that number to rise to 600,000. Argentina is another interesting market potential to grow and will slowly becoming more attractive markets like Peru and Colombia. The Brazilian auto market has recovered quickly from the impact of the crisis (thanks largely to the tax benefits granted by the government), to the point that the National Association of Brazilian Vehicle Manufacturers (Anfavea) estimates that 2009 will be sold 3 million units, representing 6.4% more than in 2008, reaching a new record. In June it sold 300,000 vehicles in Brazil, 21% more than in May and 17% above June 2008. GM This is a clear sign that the economies of the region have grown in importance as consumer markets worldwide and is for this reason it would not be surprising that it is the beginning of a series of large investment projects in region. What's next? Latinforme.com is the main source of financial information and independent opinion on American and global markets from a Latin American perspective. From our offices in Buenos Aires, Argentina, I approached the latest news and alerts to help you make gains regardless of the direction taken by the market.