SAO PAULO: General Motors Co has warned employees in Brazil that new investments there depend on a painful plan to return to profit in the country, according to a memo seen by Reuters.
In a message posted at Brazilian plants, GM’s top executive in Brazil and Argentina, Carlos Zarlenga, said after running up a heavy loss over the past three years the operation had reached “a critical moment that will require sacrifices from everyone.” The memo referenced comments that chief executive Mary Barra made during investor presentations last week about challenges in South America. “We are not going to keep deploying capital to lose money,” she said, in a quote repeated by Zarlenga.
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