Industrywide automobile sales in South America should reach a record high this year, buoyed by relatively low interest rates in some countries and strong economic growth in most of the region, the chief executive of General Motors' South American unit said.

Sales should hit 5 million vehicles, with sales in Brazil alone reaching 3.3 million vehicles, Jaime Ardila said.

GM's sales in the region should tally 1 million vehicles, Ardila added.

GM is seeking to capitalize on the good times in South America by offering new models and reorganizing its operations to get closer to dealers and take advantage of government incentives to boost car purchases.

Brazil is one of GM's five global engineering centers. Developing new truck models is important for the unit to boost exports, said Denise Johnson, GM's new chief executive for Brazil.

"I believe it is important that we maintain the engineering center in Brazil," she added.

Johnson, an MIT engineer, is taking the helm of GM's Brazilian unit to execute a full renewal of products that should take place within the next two years.

The move suggests the company has completed the financial overhaul of the Brazilian subsidiary and is now ready to win market share from local leaders Fiat and Volkswagen through new models.

In terms of labor relations, the company will work hard to offer competitive wage proposals, Johnson said, without elaborating.

The company has been saddled by continuous labor disputes in its Sao Jose dos Campos facility. That forced management to reallocate investments toward other factories in Sao Paulo state and other states.

GM is expected to soon file for an initial public offering. It will list its shares on the New York Stock Exchange and Toronto Stock Exchange, a source familiar with the matter told Reuters. (Reuters)