General Motors has unveiled plans to strengthen its Brazilian operations over the next five years with an investment of $2.9bn.
The company plans to focus on the development of new products, technologies and employee training as well as localize components with its suppliers in the country.
General Motors South America president Jaime Ardila said: "This investment will allow the Chevrolet brand continue to renew its lineup with a focus on technology and quality.
"Another major purpose of this contribution is to raise the percentage of nationalization of the components of the cars made in Brazil, in an action that also involves suppliers installed in the country."
Production in the auto industry, which accounts for one-fifth of the country's manufacturing output, has dropped 16% during the first seven months this year, reported Reuters.
The industry also witnessed thousands of job losses as the economy stagnated.
General Motors plans to put some of the workers at a local plant on paid leave; however, a metalworkers union said that the proposed plans would put 1,000 jobs at risk.
