Skip to comments.US businesses getting hammered by Venezuela crisis
Posted on 04/24/2017 11:47:39 AM PDT by detective
The political and economic crisis in Venezuela is costing US companies dearly, as General Motors can attest following the unexpected nationalization of its plant there.
The big auto-maker shut down its operations in Venezuela and laid off its 2,700 workers after the government on Wednesday seized the plant, which had been idle because of the chaotic market environment. The group had been operating in the South American country for 69 years.
GM isn't the only US business to be walloped by Venezuela's crisis.
(Excerpt) Read more at msn.com ...
That stems from the fact that PDVSA put Citgo up as collateral for a corporate bond issue in December that Rosneft underwrote. If PDVSA defaults, Rosneft could demand Citgo as compensation.
It sure is a good thing we got rid of gunboat diplomacy.
Hold muh beer while I open a factory in a communist country...
The GM plant will soon be making the “Yugo Chavez”. Ba-dum-tish! Thank you, I’ll be here all week. Tip your waitress.
That’s ok. GM will merely pass along any loss to their customers by raising prices.
The author above wrote a sensational headline for clicks, imagine that!
The reality is that the GM plant made fewer than 500 cars last year and was operating at a loss.
Shutting down a money-losing factory hurts employees, not the company.
Sure, VZ seized the GM factory...and can pay those salaries there if it wants...and can find the cash.
Does any of the above really “wallop” GM?!
This is a 500 car/year factory from the 1950’s!
And write it off on their taxes.
“The reality is that the GM plant made fewer than 500 cars last year and was operating at a loss.”
The GM plant actually made zero cars last year.
This is a MSM article, so like almost all MSM articles it is dishonest and largely untrue.
But the larger point is that the assets from so many American companies such as Exxon and others that the government seized is a big reason why Venezuelans are starving to death and marching in the streets.
Socialism in real life causes human misery and human suffering.
Don’t forget, they cornholed many if not all the gold and silver miners there too. I think the countries net production is probably approaching zero now.
And I just read that Honda of Japan is building Civic sedans in the UK to export to the US.
What the heck is happening ?
Unexpected? This is what always happens under communism.
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