DETROIT, July 18 (UPI) -- General Motors Corp. says it will invest $500 million in its Argentina and Brazil plants to develop a new generation of small vehicles for emerging markets.
The money will upgrade GM's plants in Rosario, Argentina, and Sao Caetano do Sul, Brazil, and expand and re-equip GM's Brazilian product-development center, GM Chairman and Chief Executive Officer Rick Wagoner said.
"With the improved economic environment in Argentina and Brazil, we are proceeding with our next phase of investments to support our continued growth in Latin America and around the world," Wagoner said. "GM has a rich history in the Mercosul region, and we look forward to continuing our growth for many years to come."
The Mercosul is a free-trade region involving Brazil, Argentina, Uruguay and Paraguay.
GM sales are up 18 percent in Brazil and 16 percent in Argentina in the first six months of this year, the Detroit Free Press reported.
GM Argentina posted sales of 75,000 vehicles last year, while GM Brazil sold 410,000 cars and trucks, the newspaper said.
