GM to invest $1 billion Brazil plants.

[vhx]

http://www.laht.com/article.as...12396&ArticleId=320909

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.

GM already announced three programs of paid leave, and Ardila added that GM Brazil "is going to wait and see how the market behaves in order to know what decision to take" with regard to possible layoffs.

For Ardila, the injection in Brazil's automobile sector of 8 billion reais ($3.51 billion) recently announced by the federal and state governments of Sao Paulo "has already begun to revive sales," which fell by 12% in October.

The executive said that the company will operate a "conservative" scenario in 2009 with an estimated production of 2.6 million units, and another more "optimistic" that contemplates sales of 2.9 million.

This year sales will reach 2.85 million vehicles, which represents a growth of 15% over last year.

I understand that Brazil is becoming a big car market, but isn't money being funneled out of the country a big problem? Outsourcing and so forth. I honestly would of thought a stipulation of the bailout would be to use and spend the bailout in the US (or Canada for their bailout). Although this is only 6% of the total amount, it is our money and this is only one announcement. I am worried there will be more in the future of other plants getting billions for new plants in other countries. Thoughts?

 

[StageLeft]

Pretty funny, really, the whole thing.

 

[quest55720]

I love it I just hope that stuff like this finally gets the public to the boiling point and tosses all the bums out of office who voted for the bail outs and stimulus. Get some people in washington who have some fiscal responsibility.

 

[nobodyknows]

Originally posted by: quest55720
I love it I just hope that stuff like this finally gets the public to the boiling point and tosses all the bums out of office who voted for the bail outs and stimulus. Get some people in washington who have some fiscal responsibility.

Give that man a cupee doll, he actually got the words "Washington" and "fiscal responsibility" in the same sentence!

 

[theeedude]

Originally posted by: quest55720
I love it I just hope that stuff like this finally gets the public to the boiling point and tosses all the bums out of office who voted for the bail outs and stimulus. Get some people in washington who have some fiscal responsibility.

Fiscal responsibility in this recession is suicide. It's like being financially responsible and not going to the ER when you are bleeding to death because you don't want to take on new debt. However, this sort of behavior should be taken into consideration when automakers come back for another handout.

 

[Genx87]

Take democrats claims to be protectionists and support the American worker in one hand and shit in the other. See which one fills up first.

 

[quest55720]

Originally posted by: senseamp

Originally posted by: quest55720
I love it I just hope that stuff like this finally gets the public to the boiling point and tosses all the bums out of office who voted for the bail outs and stimulus. Get some people in washington who have some fiscal responsibility.

Fiscal responsibility in this recession is suicide. It's like being financially responsible and not going to the ER when you are bleeding to death because you don't want to take on new debt. However, this sort of behavior should be taken into consideration when automakers come back for another handout.

Yep pumping a billion dollars into brazil is a great way to get us out of this recession.

 

[OrByte]

what if the alternative for GM was to close American based production in order to ramp up the money available to move forward with its Brazilian plants?

Now that GM is getting bailout funding maybe the options on the table for the company aren't so drastic.

I'm not saying this is the case, I'm just pointing out that the issue(s) maybe more complex than what this article suggests.

 

[OCGuy]

Thank the auto unions. Who would build a plant in the US so they could overpay Joe Sixpack?

 

[Mxylplyx]

Someone posted a video around here a while back about one of Ford's plants in Brazil, which was one of the most advanced and efficient plants in the world. Amazing what can be accomplished in manufacturing when you are not shackled by union agreements forcing you to forego efficiency to protect jobs.

 

[bamacre]

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Yes! :thumbsup:

Let's be fiscally irresponsible!

 

[VinylxScratches]

Here's a video about Ford's most advanced plant which is in Brazil. http://info.detnews.com/video/index.cfm?id=1189
Really cool stuff.

 

[palehorse]

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

 

[boomerang]

Save your ire. GM is not going to survive. There is only enough demand to sustain one domestic and it's going to be Ford.

 

[OCGuy]

Can one Democrat who believes in unions/high minimum wages/heavy regulation still defend those positions?

This is a classic case of what happens. So instead of X amount of Americans earning a little less than they would like to, the jobs arent going to be here at all now.

 

[theeedude]

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

 

[OCGuy]

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

You do understand how long it has been since Republicans have been "in power", dont you?

 

[palehorse]

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

The more you try to explain it, the dumber you sound.

There is never a time for fiscal irresponsibility; regardless of circumstance, which is what you're advocating.

Here's a hint: running an intentional deficit is not necessarily fiscally irresponsible -- which may have been your point, but you just screwed up in explaining it.

then again, I completely disagree with your entire premise... AFAIC, the current circumstances do not justify an exponentially growing deficit. Right now, instead, taxes should be going up while spending should be cut drastically. Period. All of this continued excess spending is going to destroy us...

 

[theeedude]

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

You do understand how long it has been since Republicans have been "in power", dont you?

A month. Not that it matters, because they should have been running surpluses when the times were good to prepare for the rainy days, instead they passed tax cuts to "stimulate" this economy into the mess we are in now.

 

[theeedude]

Originally posted by: palehorse

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

The more you try to explain it, the dumber you sound.

There is never a time for fiscal irresponsibility; regardless of circumstance.

Except Clinton found a time to be fiscally responsible. Republicans want to be fiscally responsible at bad times and big spenders in good times, the exact opposite of rational economic policy. Is it surprising to anyone that they ran this economy into the ground?

 

[OCGuy]

Originally posted by: senseamp

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

You do understand how long it has been since Republicans have been "in power", dont you?

A month.

.......

At least you are honest in your ignorance.

 

[palehorse]

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

The more you try to explain it, the dumber you sound.

There is never a time for fiscal irresponsibility; regardless of circumstance.

Except Clinton found a time to be fiscally responsible. Republicans want to be fiscally responsible at bad times and big spenders in good times, the exact opposite of rational economic policy. Is it surprising to anyone that they ran this economy into the ground?

go back and read my edits to my previous post... then, once you think you understand it, snap out of your blindly partisan world for a moment longer and realize that our current economic woes have nothing at all to do with political parties.

EVERYONE in government is to blame... from EVERY political party.

Stop being ignorant.

Here's your last clue: spending, spending, spending, and spending. If it continues, we're fucked.

 

[theeedude]

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

You do understand how long it has been since Republicans have been "in power", dont you?

A month.

.......

At least you are honest in your ignorance.

Democrats had no power to pass their economic program until Obama took charge. Even now, the Republicans are able to obstruct it.

 

[OCGuy]

Originally posted by: senseamp

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: Ocguy31

Originally posted by: senseamp

Originally posted by: palehorse

Originally posted by: senseamp
Fiscal responsibility in this recession is suicide.

Read the statement following that, you won't be confused. Time to be fiscally responsible is when times are good, like Republicans should have been when they were in power. Now we have to run deficits to have the government offset the job losses in the private sector, or this economy will simply collapse.

You do understand how long it has been since Republicans have been "in power", dont you?

A month.

.......

At least you are honest in your ignorance.

Democrats had no power to pass their economic program until Obama took charge. Even now, the Republicans are able to obstruct it.

Wait...so the only time you are "in power" is if you have a veto-proof majority in the congress?

When was the last time the republicans had that?

 

[bamacre]

Originally posted by: senseamp
Except Clinton found a time to be fiscally responsible.

You do understand that we are paying the price now for Clinton's "fiscal responsibility," right?