Friday, April 21, 2017

Venezuela Seizes General Motors Car Plant

While the US has a habit of invading or attacking sovereign nations any time the president's approval rating dips below a certain threshold, Venezuela has a similar, if less dramatic mechanism to provide a brief boost to Maduro's popularity: it nationalizes foreign plants on its soil.

It did so last July, when the country was once again suffocating under a wave of violent protests, when just hours after Kimberly-Clark said it will shutter its Venezuela operations after years of grappling with soaring inflation and a shortage of hard currency and raw materials, Venezuela retaliated by announcing it would seize the factory.

It did so again overnight, when General Motors said on Wednesday that Venezuelan authorities had illegally seized its plant in the industrial hub of Valencia; as a result the carmaker said it would immediately halt operations in Venezuela.

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5 comments:

Anonymous said...

I knew GM stood for Government Motors but I think that more than one government would own them! LOL Serves them right for trying to product vehicles in a foreign country with a history of unrest. Yet another reason to promote production of vehicles on US soil, but I guess since Trump is trying to lead that effort it will be all wrong...

Anonymous said...

This is a perfect example why American businesses should stay in America. They go for the cheap labor and end up losing their assets. Can't say I feel an ounce sorry for GM because they should've stay in US.

Anonymous said...

Agree totally with 10:31!

Anonymous said...

If you roll the dice on cheap labor you will pay the price.

Anonymous said...

Guess Venezuela just needed a bailout.