General Motors announced an investment of US $ 500 million to manufacture a new model in Rosario

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The US automaker General Motors announced today that it will invest 300 million dollars in the production of a new model of Chevrolet in the plant of Rosario, to which will also add 200 million dollars of investment that will realize its chain of suppliers .

From the company, however, they did not anticipate what will be the vehicle that will be produced from this investment, but estimated that the new product will see the street in approximately 2021. In the plant of General Alvear, in the outskirts of this city santafesina, the company produces the Chevrolet Cruze and its line will be extended with the next model, since it will be a “new global platform that shares nothing with the Cruze”.

“The main markets for the new car will be Brazil and Argentina, and new jobs will be created in the province and in the country starting in 2020,” said Carlos Zarlenga, president of the firm for the two countries, during the presentation.

“It is a new high-tech vehicle with high added value. It has a different and completely new global architecture to that of the Chevrolet Cruze,” added the executive. Sitting in the front row of the auditorium of the industrial park was heard by Governor of Santa Fe, Miguel Lifschitz, and Secretary of Industry, Martín Etchegoyen.

For the company, an outstanding factor of the industry is that of competitiveness. As indicated by GM, production in Argentina is 25% more expensive than in Brazil and 65% more than in Mexico. However, Zarlenga indicated that the Rosario plant “is going to be very competitive with this investment”.

General Motors announced an investment of US $ 500 million to manufacture a new model in Rosario
General Motors announced an investment of US $ 500 million to manufacture a new model in Rosario. Photo: Gentileza GM
In 2016, GM was the second largest car company to sell in the country with 99,617 units and had a market share of 14.2%. Between Argentina and Brazil, the company ended the year with sales for 450,000 units and by 2017, according to Zarlenga, they estimate to increase the units sold to 560,000 vehicles.

The Rosario plant produces 55,000 units a year and exports 80% of the units to Brazil. “There is a great growth of the automotive industry this year in the Mercosur. Brazil is going to grow 8% and will reach 2.3 million units, while Argentina will grow to 25% and will reach 900,000 “This is the first year of future growth, with the timing of this investment, in addition to the $ 1.5 billion we announced in Brazil in the last month, are very conducive to our Mercosur business,” said Zarlenga.

Regarding the company’s analysis of the country, Zarlenga said: “Since the beginning of 2016 we saw a very important normalization in the sector’s operation, which first manifested itself with the elimination of the DDJJ, continued with the elimination of the limitation to import and normalization of access to foreign exchange.This generated more competition, more diversity of supply for customers and that this industry is operating in Argentina, in the normal way as they operate in all countries of the world.

The last investment announced by GM in the country had been the so-called Phoenix Project in 2012, which meant a US $ 750 million disbursement to start Cruze’s production and adapt the Rosario plant for production.

Charles Berrington

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