GM moves to cut jobs at Brazil fac­tory

The Pak Banker - - COMPANIES/BOSS -

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.

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