GM & its suppliers to invest us$500 M in Argentina to produce new model
By: Aldo Leporati
General Motors will invest us$300 million while its supplier network will invest us$200 million at the Alvear plant operations through 2019 to prepare to produce a new Chevrolet model in 2020. The company invested other us$740 million in the plant between 2014 and 2016.
The new investment announcement comes as automobile production in Latin America’s No. 3 economy begins to rebound, following a sharp decline amid recessions last year in Argentina and neighboring Brazil, a major export destination. The investment up to 2019 would also increase GM's operations at the port of Rosario, which will trade more than 100,000 units per year between exports and imports, with the aim of doubling the volume of containers it moves in and out of the country each year.
In March, the government reached a deal with labor unions aimed at increasing car production to 1 million per year by 2023, part of the government’s strategy of negotiating more competitive labor arrangements sector-by-sector rather than through wholesale reform like Brazil.
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