GM moves to cut jobs at Brazil factory
General Motors Co. plans to cut 800 jobs in Brazil, after announcing less than a month ago that it will invest another $1.9 billion in the South American nation.
The automaker reached an agreement with a union at a plant near Sao Paulo to put the reductions on hold, after a twoweek strike.
The 800 workers will be on paid leave for five months, with GM and the government each paying half of their wages, company spokesman Nelson Silveria said. They probably will be released after that period because of weak demand, he said.
Car sales in Brazil tumbled 20 percent this year through July, including a 26 percent slide for General Motors, according to data compiled by Bloomberg. Yet General Motors on July 28 said it would double its spending in the country to $3.8 billion for 2014 through 2019 to develop new Chevrolet vehicles.