GM Announces $2.9 Billion Investment in Brazil

General Motors Co. says it will invest 6.5 billion reais ($2.9 billion) to strengthen operations related to its Chevrolet brand in the country through 2018.

The spending will go toward new products, technology, employee training and efforts to localize component production, according to GM.

Brazil's sagging economy has triggered a 16% drop in vehicle production so far this year. But Barra shrugs off the slump as a mid-term challenge and says it won't deter GM from betting on Brazil's future growth.

Last year GM's sales in Brazil grew 1% to 649,800 units, or 7% of its global volume.