GM halts operations in Venezuela after factory seized

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Thread: GM halts operations in Venezuela after factory seized

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    GM halts operations in Venezuela after factory seized

    http://www.detroitnews.com/story/bus...ela/100685866/

    Detroit — General Motors has stopped doing business in Venezuela after authorities took control of a factory in what GM called an illegal judicial seizure of its assets.

    The plant was confiscated on Wednesday as anti-government protesters clashed with authorities in a country that is roiling in economic troubles such as food shortages and triple-digit inflation.

    The Detroit automaker said in a statement Thursday that other assets such as vehicles were taken from the plant, causing irreparable damage to the company.

    GM says the plant was taken in disregard of its right to due process. The company says it will defend itself legally and that it’s confident that justice eventually will prevail.

    GM has about 2,700 workers in the troubled country, where it’s been the market leader for over 35 years. It also has 79 dealers that employ 3,900 people, and its parts suppliers make up more than half of Venezuela’s auto parts market, the company said.


    If the government permits it, workers will get separation benefits “arising from the termination of employment relationships due to causes beyond the parties’ control,” the GM statement said.

    Dealers will continue to service vehicles and provide parts, the company said.

    Companies have been cutting operations in Venezuela as a result of runaway inflation and strict currency controls. Last May, tire maker Bridgestone sold its business there after six decades of operating in the country.

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    Re: GM halts operations in Venezuela after factory seized

    The company says it will defend itself legally and that it’s confident that justice eventually will prevail.
    Defense or Offense? Kind of Vague!

    So that is Europe and Venezuela, is Australia next?

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    Re: GM halts operations in Venezuela after factory seized

    Why on God's Green Earth is GM still in Cuba...I mean Cuba II? This sort of event is as predictable as the sunrise. Fat dictators. Starving peasants in what should be a wealthy, thriving nation. Shame shame shame.
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by InCogKneeToe View Post
    Defense or Offense? Kind of Vague!

    So that is Europe and Venezuela, is Australia next?
    Opel Group has pulled out of Russia as well.
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Oldsmobile stopped View Post
    Opel Group has pulled out of Russia as well.
    What a bunch of paranoids! Just because Opposition Leaders and certain reporters happen to occasionally and mysteriously drop dead?
    Krikey, what difference does it make?
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by InCogKneeToe View Post
    Defense or Offense? Kind of Vague!

    So that is Europe and Venezuela, is Australia next?
    Are you seriously trying to compare Venezuela to the countries you listed?

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    Re: GM halts operations in Venezuela after factory seized

    Don't they still crank out Chevettes and S10's?
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    Re: GM halts operations in Venezuela after factory seized

    And somewhere Bernie Sanders celebrates another greedy capitalist pig business being taken over by the workers... who're now unemployed.

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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by F14CRAZY View Post
    Don't they still crank out Chevettes and S10's?
    Don't believe so, I think GM South America finally put the GMT-325 S-10 to rest. The new S-10 is the global Colorado.
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Neanderthal View Post
    What a bunch of paranoids! Just because Opposition Leaders and certain reporters happen to occasionally and mysteriously drop dead?
    Krikey, what difference does it make?
    This GM operation makes Opel Group debt mountain of losses look good, and that takes lot of doing Neanderthal. I bet GM are not making a lot of money on those old Bel Air spares in Cuba Neanderthal, they tend to bash up a new body panel or tailpipe from an old disused fridge or galvanised steel shelving to keep their lovely old dinosaurs alive, rather than buy new parts that cost 10 years average Cuban workers pay.

    Operating in Venezuela has been a costly GM reported charges of $720 million in 2015 and $419 million a year earlier related to currency devaluation and asset impairment in Venezuela.

    The Venezuelan new car market is getting one big step closer to complete stalemate: from a record high 491.899 registrations in 2007 to 23.707 in 2014 further down to 17.585 in 2015 and a minuscule 3.008 in 2016, down a devastating 83% year-on-year.

    No sign of improvement for the Venezuelan new car market in 2017 with sales down 34% year-on-year to just 215 units and down 48% year-to-date to 372 January to February sales.

    Toyota Hilux is the No1 best seller with 66 sales in Venezuela in the first two months of 2017.

    It sounds like great news to me. another huge great loss making money pit is off GM books.
    Last edited by Oldsmobile stopped; 04-20-2017 at 11:05 AM.
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Oldsmobile stopped View Post
    This GM operation makes Opel Group debt mountain of losses look good, and that takes lot of doing Neanderthal. I bet GM are not making a lot of money on those old Bel Air spares in Cuba Neanderthal, they tend to bash up a new body panel or tailpipe from an old disused fridge or galvanised steel shelving to keep their lovely old dinosaurs alive, rather than buy new parts that cost 10 years average Cuban workers pay.

    Operating in Venezuela has been a costly GM reported charges of $720 million in 2015 and $419 million a year earlier related to currency devaluation and asset impairment in Venezuela.


    The Venezuelan new car market is getting one big step closer to complete stalemate: from a record high 491.899 registrations in 2007 to 23.707 in 2014 further down to 17.585 in 2015 and a minuscule 3.008 in 2016, down a devastating 83% year-on-year.

    No sign of improvement for the Venezuelan new car market in 2017 with sales down 34% year-on-year to just 215 units and down 48% year-to-date to 372 January to February sales.

    Toyota Hilux is the No1 best seller with 66 sales in Venezuela in the first two months of 2017.

    It sounds like great news to me. another huge great loss making money pit is off GM books
    .
    It sounds like Boinie has been running GM Venezuela Ops for a while now!
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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Oldsmobile stopped View Post
    Opel Group has pulled out of Russia as well.
    Not by choice.

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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Oldsmobile stopped View Post
    This GM operation makes Opel Group debt mountain of losses look good, and that takes lot of doing Neanderthal. I bet GM are not making a lot of money on those old Bel Air spares in Cuba Neanderthal, they tend to bash up a new body panel or tailpipe from an old disused fridge or galvanised steel shelving to keep their lovely old dinosaurs alive, rather than buy new parts that cost 10 years average Cuban workers pay.

    Operating in Venezuela has been a costly GM reported charges of $720 million in 2015 and $419 million a year earlier related to currency devaluation and asset impairment in Venezuela.

    The Venezuelan new car market is getting one big step closer to complete stalemate: from a record high 491.899 registrations in 2007 to 23.707 in 2014 further down to 17.585 in 2015 and a minuscule 3.008 in 2016, down a devastating 83% year-on-year.

    No sign of improvement for the Venezuelan new car market in 2017 with sales down 34% year-on-year to just 215 units and down 48% year-to-date to 372 January to February sales.

    Toyota Hilux is the No1 best seller with 66 sales in Venezuela in the first two months of 2017.

    It sounds like great news to me. another huge great loss making money pit is off GM books.
    While I can see how removing a loss would be a benefit, I fail to see how this is good that socialistic and thug practices prevailed. Workers no longer have jobs, more families will go hungry, and grand theft by the dictator continues.
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    Re: GM halts operations in Venezuela after factory seized

    The story goes much deeper...

    http://www.gminsidenews.com/articles...a-immediately/

    The plant was siezed as payment in a 17 year old lawsuit after court awarded $4.8 billion to a dealer group that was let go for being bad at selling cars.
    GMI News Editor

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    Re: GM halts operations in Venezuela after factory seized

    Quote Originally Posted by Michael Accardi View Post
    The plant was siezed as payment in a 17 year old lawsuit after court awarded $4.8 billion to a dealer group that was let go for being bad at selling cars.
    This sounds like one of those convenient "rulings" corrupt governments keep in their back pockets for blackmail or to pull out at convenient times for PR/political gain.
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