GM mulls importing Chinese cars into Brazil-paper http://today.reuters.com/news/articlebusiness.aspx?type=CARMFG&storyID=2007-01-09T123111Z_01_N09442160_RTRIDST_0_GM-BRAZIL.XML&from=business
Tue Jan 9, 2007
SAO PAULO, Jan 9 (Reuters) - General Motors Corp. (GM.N: Quote, Profile , Research) may import cars and auto parts made in China to Brazil, seeking to compete with Chinese vehicles assembled in neighboring Uruguay, O Estado de S. Paulo newspaper reported on Tuesday.
Ray Young, chief executive of GM's Brazilian unit, said the No. 1 automaker may soon face competition from China's Cherry Automobile Co., which is assembling compact cars at a plant in Uruguay.
"We may import and nationalize the product to defend this segment," Young told Estado on the sidelines of the Detroit Auto Show. He said the move won't harm planned investments or output in Brazil.
GM's sales in Brazil's domestic market grew 12 percent in 2006 from 2005 to a record 409,932 vehicles.
The company last year cut about 10 percent of the work force at its main Brazilian plant to cope with falling exports. About one-quarter of GM's production in the country is for exports, which have suffered as Brazil's currency has strengthened against the U.S. dollar.
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