The General Motors Corporation (GM) has decided to invest US$1 billion in Brazil to expand business there, local media reported Tuesday.

The investment was part of a US bailout package and would be used to upgrade car production lines before 2012, said Djame Adila, a GM's official in charge of the markets in Brazil and other member-countries of the South American Common Market which also groups Argentina, Paraguay, Uruguay and Venezuela.

Although the company has laid off employees in some other countries in face of the current US financial crisis, it still needs time to valuate the Brazilian market before making any decision, said Adila, adding that a recent announcement of a US$3.5-billion loan plan to automakers by the Brazilian government should boost the car sales in the Brazilian market.

"To withdraw capital from an expanding market is obviously illogical. What we should do is to protect investment to the emerging markets," Adila said.

The company's car sale at the Brazilian market is expected to reach 2.9 million units in 2009, while that for this year is to reach 2.85 million, up 15 percent from last year.