GM Valencia Assembly seized by Goverment
 

Lots of buzz in the media on this but as usual there is a back story.

Venezuela's currency controls have been steadily reducing disbursement of greenbacks (real money) as low oil prices leave the OPEC nation receiving less real export revenue. That has resulted in GM being unable to import parts, forcing the halt of production lines over the last several years and slash payroll.

GM assets there are valued at 500 million USD in Valencia where it employs 3000 workers building Aveo, Cruze, Silverado, and Orlando.

Due to the currency devaluation That started in 2015 by President Nicolas Maduro's socialist government - (a 70 percent devaluation of the bolivar via a new "free floating" currency system known as "Samadi") the plant could no longer consistently monetize operations.

Yesterday the Venezuelan Government seized the plant and all GM assets

Historically Caracas, was an assembly point for the first Generation Camaro.

Shame! We've watched the decline over the past few years, very difficult country to operate in.

Maybe now they'll build a plant to replace it in the US where it belonged in the first place?!? Especially after our tax dollars bailed out their poor management decisions...

X10 I agree. You get what you pay for. Hopefully American companies will wake up and smell the coffee.

In the past, didn't these same bunch of commie's grab oil refineries, etc. owned by America? ... TAZ

My wife and I each year host high school exchange students from Venezuela. We are on our 4th year. Through this experience we have learned a lot on how a corrupt government can simply destroy a country and their people. They are on track to have 2600% inflation this year. We simply could not imagine the day-to-day struggles the people have. Taz you are correct about the government seizing oil companies. The country's economy was based on oil sales. They literally import 95% of the products they need including food. There is no desire to innovate or be competitive when the government sets price controls on all products sold.

I fear a violent coup is necessary to get things back on the right track. This latest take over by the government will lead to no outside companies wanting to do business there.

Todd

Unfortunately, that's what it takes sometimes. It's unfortunate that ignorant people, in positions of authority, force good people to take by force what should be negotiated easily.