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General Motors to Invest $1 Billion the $3.5 Billion Bail-Out Dough in Brazil Operations February 3, 2009

Posted by Daniel Downs in Congress, corporations, globalism, NAFTA, news, politics, South America, taxes.

According to the Herald Tribune, “General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market.”

How do we know it is from taxpayer bailout money? The president of GM Brazil, Jaime Ardila says so.

“[T]he 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.”

Why on earth would GM trandfer U.S.tax dollars to Brazil instead of reinvesting in at home? What kind of problems are GM facing at home that would motivate them to invest it elsewhere? Here the Herald Tribune does us a service by providing an answer:

“It wouldn’t be logical to withdraw the investment from where we’re growing, and our goal is to protect investments in emerging markets,” he (Ardila) said in a statement published by the business daily Gazeta Mercantil.

So there you have it. Not only do our thoughtful representatives on Capitol Hill support corporations like GM to send jobs over seas, they also encourage them to send our dollars overseas as well. I’m sure the corporate stimulus qua bailout money will create or at least maintain jobs but not at home. I’m almost as certain the global corporation stimulus package will help assure that their partners maintain the economic empire.

GM Brazil expect production to decline a little in 2009. Company estimates production of 2.6 million units down from 2.85 vehicles in 2008. They hope with the $1 billion stimulus from the U.S. and an additional $3 billion stimulus from the Brazilian government sales with increase to 2.9 million instead. That amounts to a depressing reduction of sales revenues from $11 billion to $9.5 billion projected for 2009.

Eh, what’s a few billion anyway.

Source: http://www.laht.com/article.asp?CategoryId=12396&ArticleId=320909



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