General Motors plans to invest 740 million dollars through 2016 in Argentina to build a factory to turn out aluminium motors. The announcement comes as the Argentine auto industry saw a more than 20% drop in production in the first quarter compared to the record performance in the same period in a year earlier.
The announcement was made at a government event by GM president Dan Ammann and president of GM South America Jaime Ardila with Argentine Chief of Staff Jorge Capitanich and Industry Minister Debora Giorgi in attendance.
Argentina will be responsible for manufacturing a new Euro 6-certified aluminum engine. The plant will have an output of 90,000 engines per year, with 10,000 units going to the European Union annually.
In 2012, then CEO of GM Dan Akerson announced the company would invest 450 million dollars between 2013 and 2015 to expand its Rosario Automotive Complex in order to build a new Chevrolet vehicle for South America and other emerging markets.
The complex currently employs some 2,800 people and produces seven models. Production at the new factory is to start in 2017 and aims to reach 140,000 motors a year.
General Motors suspended production in Argentina in 1978, but returned in 1997. It plans another motor factory on Mexico.
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GM would have been better building in Brasil.Jul 14th, 2014 - 10:24 am 0
There are millions of soft drink cans collected each day, so the South American engines etc can be recycled products.
It seems that GM is continuing to make stupid strategic decisions, just like it does in Europe.Jul 14th, 2014 - 10:59 am 0
Let’s hope they come to their senses before the financial disaster that is coming to your favourite country actually arrives.
This is a way for GM to show that they have plans for the U$ trapped in Argentina so its not confiscated by the Gov't.Jul 14th, 2014 - 11:51 am 0
Who knows if they'll ever build the plant.
Lots can happen in the next 2 years.