Sao Paulo, Brazil, 01 Feb – the Brazilian subsidiary of US car manufacturer General Motors (GM) is due to begin importing vehicle parts from China this year, the company said Monday.
Importing parts, the details of which have not been made public, is one of the measures GM is taking to reduce production costs, GM’s Brazilian manager said.
Ray Young said that the Brazilian subsidiary would also start importing car parts from South Korea, Mexico and even from European countries.
Young did not say however what volume of parts would be imported, for strategic reasons.
In 2005 GM’s Brazilian subsidiary posted losses for the eighth consecutive year, said Young on saying that on exports alone the company spent US$200 million, with the recent increase in value of Brazil’s currency.
Brazil is part of the region that GM calls LAAM, which includes Latin America, South Africa and the Middle East.
By number of vehicles sold, in 2005 AAM posted its best ever results, with 881,000 units, with 442,000 units in Latin America, 365,000 of which in Brazil alone, making the country GM’s sixth largest market. (macauhub)