GM Ceases Venezuela Operations After Government Seizes Plant

BloombergGeneral Motors Co. shut operations in Venezuela after authorities seized the automaker’s plant and took its vehicles in the first nationalization of a major company’s facilities in the country in more than two years.

GM’s factory was “unexpectedly taken by the public authorities, preventing normal operations,” according to an emailed statement. The Detroit-based automaker said it “strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions, within and outside of Venezuela, to defend its rights.”

The plant shutdown took place as protesters flooded the capital city of Caracas in the biggest show of opposition to President Nicolas Maduro’s government in months. The auto industry has collapsed, with sales plunging 92 percent in March, as a shortage of dollars has pushed new car prices beyond the means of all but the wealthiest Venezuelans.

Venezuela is experiencing the worst recession in decades, with gross domestic product plummeting 10 percent in 2016, according to the International Monetary Fund. Revenue from oil, which accounts for 95 percent of foreign-currency earnings, has tumbled along with prices. With the country short on cash for imports, citizens wait in long lines to find scarce household items. …

CLICK HERE FOR FULL ARTICLE

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to our newsletter!

Latest Tweets by @IASecurity

Videos Featuring Our Experts

Kingpins and corruption: Targeting transnational organized crime in the Americas Roger Noriega on the Crisis in Venezuela: The world's response | IN 60 SECONDS

Venezuelan crisis: A brief history by Roger Noriega | IN 60 SECONDS

WAC Philadelphia: Latin America’s Role in 2017 and Beyond, feat. José R. Cárdenas

Promo for CNN's AC360°: "Passports in the shadows", feat. Roger Noriega

Ambassador Roger Noriega on PBS NewsHour discussing U.S.-Mexico relations under Trump

José Cárdenas Interview with Opinion Journal: "Hungry in Venezuela"

Ambassador Noriega Analyzes President Obama’s visit to Cuba on PBS’ ‘Newshour’

About

During the last several decades, the United States has invested billions of dollars in trying to help the governments of Latin America and the Caribbean deliver better lives for their citizens. This has meant helping them increase internal security by combating the illicit growing and trafficking in narcotics and the activities of terrorist groups, as well as helping them to shore up their democratic and free market institutions.

Unfortunately, in recent years, continued progress in these areas has been threatened, not least by the elections of radical populist governments in Venezuela, Bolivia, and Ecuador. These governments have instituted retrograde agendas that include the propagation of class warfare, state domination of the economy, assaults on private property, anti-Americanism, support for such international pariahs as Iran, and lackluster support for regional counter-terrorism and counter-narcotics initiatives.

We are a group of concerned policy experts that fear the results of these destructive agendas for individual freedom, prosperity, and the well-being of the peoples of the region. Our goal is to inform American policymakers and American and international public opinion of the dangers of these radical populist regimes to inter-American security.