General Motors do Brasil expects to increase its engineering services exports to other GM operations worldwide but mainly in the United States.
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According to the Brazilian unit president, Ray Young, ‘exports’ of services will rise from US$200m this year to about $400m in 2007.
To Young the cost-cutting measures being taken by the US head office could be a good opportunity for the Brazilian Technology Centre.
“We need to change some engineering and production processes in the US and countries with know-how in low-cost process, such as Brazil, could be a solution”, said Young.
Over the next year GM do Brasil expects that the volume of its Brazilian-made vehicle exports will decrease by about 30% as a result of the Brazilian currency appreciating against the dollar but expects to compensate for this disheartening performance – and lost profits – with engineering services.
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By GlobalData“We have plans to enlarge our Technology Centre to help the corporation reduce costs,” said Young.
GM do Brasil has 650 engineers and plans to hire more.
GM’s new global engineering system will give the Brazilian centre in São Paulo a boost. GM wants its 12 engineering centres worldwide to work more closely with one another and five countries, including Brazil, lead these centres around the world. The others are in the US, Germany, Australia and South Korea.
A good current example of how this system will work is the development of the Hummer H3 version for Europe, Asia, Middle East and African markets.
Though it will be built in GM’s Struandale plant in Port Elizabeth, South Africa, the Brazilian Technology Centre led the work to adapt the vehicle to comply with European safety rules local market preferences.
GM do Brasil calls the new H3G (the ‘G’ means global) and production starts in September 2006.
“In March 2007 we will start production of a unique right-hand drive version and, at the beginning of 2008, we will launch a diesel version,” said Pedro Manuchakian, vice-president of General Motors’ Latin America, Africa and Middle East (LAAM) and also engineering director of General Motors do Brasil.
The South African-made H3 will have an Isuzu 3.0-litre diesel engine.
Rogério Louro
