EDITOR OF REDSTATE
GM Will Use Bailout Money to Help Brazil’s Economy
The Latin American Herald Tribune reports
General Motors (GM) plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.
According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to “complete the renovation of the line of products up to 2012.”
GM, however, “denies” this, telling Autoblog
spokesman Richard James replied, “I don’t know if something got lost in translation but Jaime Ardila, President of GM Brazil did NOT say that funding for GMB projects would come from the US financial aid package. GM Brazil has $1 billion in investments that have already been approved but they will be financed by our Brazilian operations through local sources.”
Just as Opel (GM’s German division) is going to the German government for assistance, GM Brazil-Mercosur is raising capital in that country.
But how is this really a denial? GM is getting billions in federal aid to cover costs in this country and, by getting that money, it will free up initiatives in Brazil.
In other words, if GM did not get the bailout money, it could not spend the $1 billion in Brazil. Why? Because the Brazil money is dependent on GM keeping the lights on. GM is dependent on the federal government keeping GM’s lights on.
Why doesn’t GM take the Brazilian money and keep the lights on, instead of taking the American money to keep the lights on and the Brazilian money to build cars in Brazil? Haven’t we done enough already?