Geert Noels writes on General Motors and Opel Antwerp. General Motors will (of cours) file for Chapter 11; if not next week, then later this year. The reason is simple: the alternative would be a bailout of General Motors. But seriously, where does General Motors needs to invest money when it has a long term vision? In markets like the US or Belgium which have very low growth prospects? Of course not, that would make no sense. No, GM was planning to use this bailout money to invest for example 1 billion US$ in its Brazilian plants; see the article in the Herald Tribune of last week. As Jaimle Ardila, president of GM Brazil-Mercosur puts it:
"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil."
Only because of this a bailout would never be able to operationalise. The US public opinion would never accept that GM bailout money would be invested in Brazil while 35.000 jobs arte being cutted in the US. Yet purely figure wise GM has no alternative to do so; it's future growth beyond 2012 resides in countries as Brazil.
Have you sen the Chevrolet GPiX crossover coupe that was presented at the 25th edition of the Sao Paulo International Auto Show? The car was completely developed by General Motors Design in Brazil. It's a two-door body car which can drive on all kind of roads. A car build for Emerging Markets.“It offers the sporty design and versatility necessary for a country with the continental dimensions of Brazil,” said Carlos Barba, General Director of Design for GM Latin America, Africa and Middle East; with this project, the Chevrolet GPiX concept could result in the development of many models for Brazil and the Mercosur region.”
GM Design Center Brazil is one of 11 GM studios around the world. Its facilities are being expanded to meet increased responsibilities in the GM global development process. GM is investing US$ 36 million to expand the facilities, acquire new and more modern equipment and hire new professionals. When complete, the GM Design Center in Brazil will triple in size from 3,000 sq. m. to 9,150 sq. m. and the staff will increase from 79 to 190 professionals.The Design Center, which was already one of the most modern in Brazil, will also add next generation equipment to its ‘3D’ virtual reality facility to become the most advanced studio in the country and on par with any automotive design studio in the world.
So, what will happen? GM will file for Chapter 11 and the company will be torn apart. GM Brazil will be a precious gem, since the Brazilian plants are amongst the most modern in the world. Not only the GM plants, but aksi the state-of-the-art Ford maunfacturig plant in Camaçari,in the northeastern state of Bahia; see a video on the plant here. And Opel Antwerp, we will be fully at the mercy of Opel Europe, with HQ in Germany. As if they care what will happen with the tiny plant in Europe where there is a screaming overcapacity.
