GMC expected to establish 1 bln budget in Brazil on 5 percent GDP growth

General Motors Company (GMC) is expected to establish a 1 billion U.S. dollars budget next year for launching new products in Brazil in the 2009-2010 period, if the country's GDP growth rate remains at about 5 percent per year.

The announcement was made by president of GMC in Brazil Ray Young at Sao Paulos International Automobile Trade Show on Tuesday.

Young will present in the first half of 2007 a business plan to the board of directors at the transnational company's headquarters in the United States, including the 1-billion dollar budget.

GMC will only approve the plan if the country's Gross Domestic Product (GDP) growth rate remains at approximately 5 percent per year, he said.

He also said that GMC in Brazil would cut production costs, reduce exports and increase domestic sales.

In 2006, the U.S. company expects to export 160,000 units, down from 210,000 in 2005. Due to Brazil's overvalued exchange rate, Young estimated a further 10-percent reduction in exports in 2007.

Meanwhile, GMC expects to increase sales to Brazil's domestic market by 10 percent on the basis of 2005's activity, climbing up to 400,000 units.

Young also announced that the company was to invest 100 million dollars in its technology center in Sao Paulos metropolitan region.

Source: Xinhua