GM delays investment, furloughs employees in Brazil

Wednesday, 18 March 2020 00:32:41 (GMT+3)   |   Sao Paulo
       

Automaker General Motors has delayed plans to invest BRL 10 billion ($1.93 billion) in its South American operations between 2020 and 2024, and also furloughed employees for two weeks at four Brazilian plants due to the coronavirus outbreak.

GM furloughed workers Argentina as Monday, without disclosing a timeline for the workers returning to work. The media report said another plant in Ecuador is expected to halt operations.

GM South America CEO, Carlos Zarlenga, said the company will review the $1.93 billion investment, without providing an exact timeline.

“We will postpone because we need, in the short term, to have a stronger cashflow to fight this (Covid-19) situation, which nobody knows how long it will last,” he told Valor.