Posted on 04/20/2017 6:45:42 PM PDT by Red in Blue PA
The legal protection of property is a requirement of prosperity & liberty, regardless of who owns it. If the protection of property is not enshrined in a nation’s laws, there is NO investment in the nation.
This guarantees poverty, and later, violence.
Venezuela is now at that later point.
GM’s Venezuelan operations have been a drag on earnings for several years. In the second quarter of 2015, the company took a $720 million charge for currency devaluation and asset valuation write-downs as the economy faltered.
South American operations, which include Venezuela, account for a relatively small portion of GM’s earnings and sales. Last year the company lost $400 million before taxes in South America, but as a whole the company made a pretax profit of $12.5 billion. GM sold just over 583,000 vehicles in the region last year, but that was only about 6 percent of its total sales.
In its 2016 fourth-quarter earnings release, the company said that its South America region “remains challenged from macro-economic and political standpoints.”
Bridgestone, Halliburton, Ford Motor and Procter & Gamble; left or curtailed their business
Happy to hear it. Maybe if this happens more often, American auto manufacturers will stop moving their plants to other countries thereby robbing Americans of good jobs in exchange for cheap labor.
GMs shares were up fractionally today. Maduro did them a favor. Fiat Chrysler and Toyota are still in operation. Ford has already pulled out before this.
It should be clear what socialists think about private business, like when Obama described working for one as being “behind enemy lines”. Although they’re not going to tell you directly what it means, they give us plenty of clues. Predicting which way the wind is blowing is critical to success in business. Like the song goes, “You’ve got to know when to hold ‘em, know when to fold ‘em”.
Didn’t GM take a big write off/loss last year?
I’m looking forward to my Lada. We put an order for it back in 1967 and it’s just about made it through the production line.
Forgive my hurtful language, but who was the retard at GM who even *kept* a factory in Venezuela?
Venezuela has been socialist for 15 years.
What did the morons at GM think would happen?
One of the hazards of outsourcing.
Especially when it starts to crumble all around them.
If I can’t have a ZiL, I’m not buying Russian.
What are the chances that they will be get parts for the factory.
Let me get this straight. GM is all butt hurt, because someone unlawfully (or at least immorally) seized GM property? What kind of company supports such theft? Why, GM itself!!! Cry me a river, GM. what about the bond holders you screwed during the Obamacare administration. You know, the investors who were supposed to be paid first when you ran to government for bankruptcy and a bail out. You stole from them because you could. Sort of like what just happened to you in Venezuela.
If I can’t have a ZSU-23, I’m not buying russian either.
Good point about the GM bond holders!
The take over shouldn’t matter to us. Venezuela is only producing Obama Weenie mobiles.
In their desperation, the socialist regime continues eating the geese that lay the golden eggs.
GM got saved till near the end - they started by ripping off the foreign oil companies. Now their oil production is declining, due to mismanagement and lack of maintenance.
Then they chewed through the economy bit by bit, expropriating recklessly until now, when you can barely find pharmaceuticals or toilet paper, and the average Venezuelan lost 19 pounds in the last year from food shortages.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.