Thursday, April 20, 2017

Venezuela is having big problems with USA car maker factories, Ford pulled out and took an 0.8 Billion dollar loss, and now the police have seized the GM plant in Valencia

"Yesterday, GMV's (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities," the company said in a statement.

GM has about 2,700 workers in the troubled country, where it's been the market leader for over 35 years. It also has 79 dealers that employ 3,900 people, and its parts suppliers make up more than half of Venezuela's auto parts market, the company said.

Last May, tire maker Bridgestone sold its business there after six decades of operating in the country, joining other foreign multinationals including Halliburton and Procter and Gamble who have either slowed or abandoned their investments in Venezuela.

Venezuela is not facing only one crisis but multiple interconnected crises.

Key among them is the state of the economy. In January 2017, according to estimates by the Finance and Economic Development Commission of the National Assembly (AN), it was predicted that inflation will close this year at 679.73 percent.

However according to the International Monetary Fund, this year and next year's projection is even higher. The organisation estimates that inflation will reach 720.5 percent this year, the highest in the Americas, and 2,068.5 percent by 2018.

1 comment:

  1. When will liberals learn that socialism/communism never EVER works ??