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GM Motors Invests R$ 10 bn in Setting up a New Factory in Sao Paulo

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2019-03-25

According to Taipei Economic and Cultural Office in Brazil, GM has announced a R$ 10 bn worth of investment on March 19th in setting up two new factories respectively located in São Caetano do Sul and São José dos Campos in the period from 2020 to 2024, after 2-month favorable policies negotiation with Sao Paulo State Government and its City Government. GM will manufacture new products and introduce new technology into these two factories, while the State Government of Sao Paulo will allow GM to join the IncentivAuto Project in return, which includes the ICMS tax reduction of up to 25%. However, the Government also requires GM offer at least 400 jobs. On the other hand, the São Caetano City Government offers GM an 8-year benefit in its ProAuto Project, which includes the tax (IPTU, ISS, water, sewage treatment, etc) reduction of up to R$ 12.5 million.  
 
The State of Sao Paulo is a very important industrial area for Brazil. Its industrial capacity represents 40% of the nation’s total and its production value represents the nation’s 45.3%. Industries of the State of Sao Paulo are mostly located in the downtown area and 20% of the industries are located in the Great Sao Paulo area. In the suburb of Sao Paulo City there are 12 globally known car manufacturers whose total capacity per year reach 1.2 million units of vehicles. As a result, the State of Sao Paulo is also considered the 12th largest car manufacturing heartlands in the world.

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