GM plans to invest nearly $3 billion into its Brazilian operations

General Motors CEO Mary Bara has announced that the company will be investing $2.8 billion into its operations in Brazil over the next five years. The United States automaker made the announcement on Thursday while Bara was meeting with Brazilian president Dilma Rousseff in order to thank her for her tax incentives for automakers.

General Motors said that the investment would go towards developing new car and technologies, train new employees, and localize the automaker’s components with its Brazilian suppliers. Bara said that there are some mid-term challenges that the company must face, but that General Motors was committed to one of its most important markets.

The automotive industry in Brazil, which makes up nearly one-fifth of the country’s entire manufacturing output, has slashed production by 16% this year as Brazil’s economy declines. General Motors is currently in a dispute with a metalworkers union outside of Sao Paulo over plans to place some employees at a local factory on paid leave, something the union claims could threaten the jobs of hundreds of workers.

The union said that it will hold General Motors to the promise of increasing its investments in its Sao Jose dos Campos plant. While Bara didn’t mention the labor issues at her meeting with President Rousseff, she did thank the president for tax incentives for automakers and improved credit conditions in Brazil.

Read more about the story at The Wall Street Journal.