GM will produce compact in San José

The novel on the definition of the plans of General Motors (GM) for the unit of São José dos Campos (SP) gained another chapter. The overall dispute plant producing a new compact. The initial project foresaw the construction of a popular Celtic instead. However, the plans have changed, said a source who declined to be identified. "The automaker goes to manufacture a car bigger than Celta and no longer a ' popular '. The Brazilian consumer asks for it, "the source said.
Today, Celtic is produced in the plant of Gravataí (RS) and is the fourth most entry vehicle, alright, according to the National Federation of distribution of motor vehicles (Fenabrave). "The small car project has been cancelled," said the source.
GM Brazil is in the running to receive an investment of $ 2.5 billion of the array. The cipher would be used to assemble a new line in the São José unit, one of the largest brand in the world.
However, the clash with the local Union continues and has been more headache to the company than expected. This is because, in July this year, the company's top management in the country decided to close the production line of the Classic, which is already obsolete. However, without reaching an agreement with the Union, the automaker backtracked and decided to keep the production, however, on a smaller scale. GM said it opened a Voluntary Dismissal program (PDV), which aims at the shutdown of just over 800 employees.
The automaker reported in mid-June this year, that the decision of the contribution-which will be taken by billionaire board of the company in Detroit, in the US-would be released between late July and early August. However, with the impasse created in San Jose, this ad is not out yet, what shows the slope of the array in choosing Brazil to receive the resources.
If the contribution is confirmed, the GM is studying how to use the cipher. Modernize the Classic line is apparently the first and only option, since building a totally new is expected to cost twice the value.
And, at least for now, the decision to produce a compact model of Peugeot in the Paraíba Valley is still being assessed by GM.
The American and French carmaker made a global joint venture, recently, to optimize costs, which would include the production of cars jointly.