SÃ O PAULO—General Motors Co. plans to double its investment
plans for Brazil through 2019 as part of an effort to increase
sales in emerging markets.
The U.S. car maker will have invested 13 billion reais ($3.8
billion) in the South American country for the 2014-2019 period to
upgrade existing plants and introduce new technologies, GM South
America President Jaime Ardila said at a news conference Tuesday,
when it was also announced he would retire by the end of this
year.
The investment won't include any new plants, Mr. Ardila said.
The company's previous plan for the time period included
investments of 6.5 billion reais.
GM will develop six new car models in Brazil as the company
tries to offer models in new segments, Mr. Ardila said. Some of the
investment will also go to new product development and supplier
development.
The goal of the increased investment is to meet evolving
consumer demands in growth markets regarding safety, fuel economy
and other elements, according to GM President Dan Ammann.
"We felt like we needed to bring an entirely different approach"
to meet those expectations and develop a new family of vehicles to
meet requirements of customers, Mr. Ammann said.
General Motors estimates that it can sell 2 million cars into
those new segments, according to Mr. Ammann.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com and Rogerio
Jelmayer at rogerio.jelmayer@wsj.com
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