GM Expands Buyout Program in Brazil

General Motors Co. began offering voluntary buyouts on Friday to workers at its factory in Sao Caetano do Sul, Brazil, and extended a buyout program at its Sao Jose dos Campos plant. The company did not disclose buyout terms.

The union representing worker at those facilities says 186 members accepted the original buyout at Sao Jose. The union says GM has shed nearly 2,000 jobs at the two factories in the past 12 months.

The company says reduce structural costs is key maintaining its current production plan. GM cites rising costs for labor and raw materials and intensifying competition in the Brazilian market.

Other automakers have curtailed production in Brazil lately as vehicle inventories swelled. Vehicle sales in the country fell 5% year over year to 1.4 million vehicles in the January-May period of 2012, according to carmaker group ANFAVEA, which says tight credit is partly to blame.