Friday, April 21, 2017

Venezuela Government Now Targeting Foreign Companies



L.A. Times: Roiled by protests and soaring inflation, Venezuela is pushing out foreign companies

General Motors has become the latest multinational company to pull out of Venezuela after it says government authorities illegally seized its plant there this week.

In a statement released by GM on Thursday, the company said its factory had been “unexpectedly taken by the public authorities, preventing normal operation.” The company, which said its vehicles were also seized, vowed to take legal action amid a deepening political and economic crisis in the oil-rich South American nation.

The car manufacturer is one of a growing number of international firms to report major problems in Venezuela, which has recently been roiled by food scarcities, soaring inflation and weeks of bloody street protests calling for the removal of President Nicolas Maduro and his leftist government.

Read more ....

Update #1: Maduro targets companies as Venezuela unrest grows (Financial Times)
Update #2: Venezuela just did General Motors a favor by seizing its car assembly plant (Quartz)
Update #3: Venezuela's latest corporate target is Spain's Telefonica (CNN)

WNU Editor: The Venezuelan government excuse for the GM seizure is over a 20-year-old lawsuit brought by a former GM dealership in western Venezuela demanding damages from GM of 476 million bolivars — about $665 million dollars. Yup .... a dealership demanding $655 million US. According to the Venezuelan government they have not seized the plant .... they have just frozen its assets, and is demanding that GM resumes production .... Venezuela says it didn't seize GM plant for state use (CNN). Hmmmm .... the cars that belong to GM are now gone. GM's bank accounts are frozen and useless. And there are government and military officials at the gates. IMHO .... the plant has been seized. And as for production resuming .... because of Venezuela's currency crisis the plant has not produced a car since 2015 .... so I guess no one is going to miss it.

4 comments:

James said...

There's absolutely no turning back for Maduro and the boys now.

Anonymous said...

socialism !

Unknown said...

Reminds me of the 2nd Balkan War

The author of a piece on the Balkan Wars had the caption for the Second Balkan War of:

"One More time with Feeling"

So this avaricious bus driver dude with a grade school education or something, thinks he is going to do better than the USSR, the DDR, China, Cuba, the Kmer Rouge, Ethiopia, Mozambique, Somalia, India, Angola, etc.

Maybe he is hoping for an Angolan or Zimbabwe payout, where the countries are poor, but the fascist/liberal dictators are rich.

Communist China had to start decollectivizing to feed itself. I'm sure Young Commutard did not approve. Well decollectivizing the farmns was like pulling a hanging string on a knit sweater. People resented it. Farmers were richer than they were.

Then the whole house of cards came down.

Unknown said...

'Once' not 'One'