Venezuelan Government Seizes General Motors Plant


#1

CARACAS (Reuters) - General Motors said on Wednesday that Venezuelan authorities had illegally seized its plant in the industrial hub of Valencia and vowed to “take all legal actions” to defend its rights.

The seizure comes amid a deepening economic crisis in leftist-led Venezuela that has already roiled many U.S. companies.

“Yesterday, GMV’s (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities,” the company said in a statement.

It said the seizure would cause irreparable damage to the company, its 2,678 workers, its 79 dealers and to its suppliers.

Venezuela’s Information Ministry did not immediately respond to a request for information.

Venezuela’s car industry has been in freefall, hit by a lack of raw materials stemming from complex currency controls and stagnant local production, and many plants are barely producing at all.

In early 2015, Ford Motor Co wrote off its investment in Venezuela when it took an $800 million pre-tax writedown.

The country’s economic crisis has hurt many other U.S. companies, including food makers and pharmaceutical firms. A growing number are taking their Venezuelan operations out off their consolidated accounts.

Venezuela’s government has taken over factories in the past. In 2014 the government announced the “temporary” takeover of two plants belonging to U.S. cleaning products maker Clorox Co which had left the country.

Venezuela faces around 20 arbitration cases over nationalizations under late leader Hugo Chavez.

http://finance.yahoo.com/news/general-motors-says-venezuela-illegally-seizes-auto-plant-070823649--finance.html


#2

The consequences of off shoring.


#3

It is Chile´s 1973 all over again, but this time the army is on the socialist side.


#4

A Communist government nationalizes a foreign factory? Huh. Go figure.

Seriously - we need to stop propping up these retarded governments and risk losing a ton of shit just because of the desire for dirt-cheap labor.


#5


#6

It’s time for GM to hire a PMC and take down Venezuelan army and reclaim their factory.


#7

Serves them right, let this be a lesson to the auto making assholes to stop building plants overseas.


#8

#9

GM will simply stop sending their materials to that shithole, they might have stored raw materials on-site that could last a few months of slow pace production and then there will be no more money to make.

This is a act of a desperate government, while millions are protesting across the country.

GM will sue the government through third party lawyers and not continue operating the plant itself. Ultimately, the hundreds if not thousands of workers at the plant lose their jobs.


#10

They do not learn… China has bled so many companies of their ideas, ability to run their own business and of course their values that their isn’t much left of them… at least not the companies that we would recognize. It all started in China with Cisco systems saying that they wouldn’t compromise their values by helping China build an Internet network that the Chinese government could censure… that didn’t last long…


#11

If multinationals want to send factories to 3rd world countries to save money then they can damn well accept the risks. Honestly we should encourage more 3rd world shitholes to do things like this.


#12

You have to love the technology transfer that has taken place.


#13

#14

Thanks for sharing that. Proof that the sunshine and rainbow virtue signaling liberals of Silicone Valley will knowingly create a tool for use by an oppressive regime to identify, torture, and kill citizens based upon their religious belief.

So much for the tolerance of the left.


#15

There are bigger problems than the seizure of the GM plant. Shit is hitting the fan.


#16

Look at all of those people. There is no way those communist assholes will stop all of them. I hope they all get beaten and thrown off that overpass. They deserve it. Never corner a hungry pissed off animal. Humans are animals and we can very easily go primal if the situation calls for it.