In the Brazilian state of São Paulo, General Motors (GM) has closed a deal with the city of São José dos Campos and local steelworkers which involves a promise to invest 5bn reais (US$1.34bn) to upgrade its factory in the city.
The decision was made in conjunction with labor cost reduction measures decided among the three parties. Several meetings regardin the subject were held ealier this year.
According to GM, this is a key step in solidifying the company's plans in Brazil. Investments will go toward a project to build the new generation of Chevrolet S10 pickups (to compete with the Toyota Hilux) and an upcoming SUV. The current SUV being marketing in the region is the Chevrolet Trailblazer (launched in 2012).