General Motors CEO Fritz Henderson has said Brazil’s car market has “a very good outlook” and the automaker will reinvest profits from the country’s unit locally.
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Henderson told newspaper O Estado de S Paulo that a policy to reinvest the Brazilian profits into the same operation has no “deadline for a change.” He plans to visit Brazil in November to address future expansion plans, the newspaper reported, according to Reuters.
GM reportedly plans to continue with a massive investment plan in South America, betting on emerging markets such as Brazil. A US$2.5bn investment plan for the 2007-2012 period for the Mercosur region has been nearly funded, executives said in June.
GM’s downsizing in the United States isn’t a concern, Henderson told the paper, adding that the company is working to boost market share in countries like China and Brazil. The car market in the United States tumbled to post World War II levels this year, Henderson said.
Henderson said a plan by the US government to sell its stake in GM is yet to be defined, but added the restructured company might go public around the second half of 2010, Estado reported.
Henderson also shrugged off speculation over the departure of chief financial officer Ray Young. Both Young and Henderson, as well as former CEO Rick Wagoner, were once heads of GM’s Brazil unit, Reuters noted.
