GM halts operations in Venezuela after factory is seized

Don't bet on prevailing. I guess they couldn't see this coming could they? I don't know why because it doesn't take a rocket scientist to figure out if you lie down with dogs, sooner or later they're gonna get fleas. I sincerely hope GM doesn't think of coming to the taxpayers for some kind of a bailout to cover their losses in Venezuela, that's something that should never happen. Sooner or later something similar will happen in China and they will simply seize U.S. Assets there like Apple's Foxconn and I simply won't be able to stop laughing.

 

No liberal takers? I didn't think so.

 

Do you think this is the start of the revolution? Venezuela is in such a mess.

 

There is already one in Venezuela. It's the end result of Socialism.

 

Did oil companies get restitution after Venezuela confiscated the oil companies' assets?

GM should've known better.

 

If GM was smart, they would have made their investment in Venezuela through one of the many countries that has a bilateral investment treaty with Venezuela. That provides a mechanism for suing Venezuela as a result of this seizure.

It is normally a long process, but often results - ultimately - in recovery of the loss.

 

There is this really good movie, called Phantom, about a Soviet submarine where the Captain is being offered a chance by a rogue KGB agent to go along with a mutiny.

Here's a good line from it:

Why mention this here?

Because Venezuela is a shithole, its always been a shithole, it always shall be a shithole.

Everyone knows this including GM management, and yet they chose to share a tent with them anyways.

Now I hope that no Americans were caught up in this fight and if any of them were injured/killed, or are currently being held hostage, then Trump needs to send a few AC-130's over and level a few cities.

But other than that this is GM's problem and they can deal with it on their own.

 

Didn't this happen to several US companies in Cuba after Castro took control? It's hard to figure why US companies don't learn from the past. Socialism does not work. GM should have been out of there years ago.

Good luck with International courts.

 

Venezuela can't even feed their own people, GM doesn't stand a Ghost of a chance of recouping their money back. I just can't stop laughing.

 

It's the lure of easy money with cheap labor. I hope GM loses their shirts on the whole thing.

 

You can laugh, but people who actually count on getting their money back are taking it seriously. I believe there are currently something like 24 cases pending against Venezuela at ICSID. Companies that get an award in their favor can then collect against Venezuelan commercial (i.e. non-diplomatic) assets worldwide. Venezuela is an OPEC country. I expect they have business arrangements and assets in a lot of places.

I would be surprised if GM doesn't file an ICSID case for this expropriation - assuming they were smart enough to channel their investment through a subsidiary in a country with a BIT with Venezuela.

 

Well that is a very anti-American / America-hating thing to say.

 

I don't care, it's their own fault for outsourcing American jobs. I hope they lose all their money "invested" in Venezuela.

 

It's "American" to build domestic cars overseas?

 

GM set up the Venezuelan subsidiary in 1948.

The factory was producing cars for the South American market.

It has not been producing cars recently due to reduced demand in Brazil and Venezuela.

It is un-American to wish ill upon an American company that has had its overseas operations seized. So yes, your comments are un-American / America-hating.

 

Do you hope that the Trump family loses all their money invested in getting their products manufactured abroad?

 

I guess they haven't actually assembled any cars there since 2015. They must be making after market parts or something though because they just fired 2,700 employee's of VGM.

http://www.mlive.com/news/us-world/index.ssf/2017/04/gm_fires_2700_venezuela-based.html

I still call them Government Motors. Obama said they paid back their loan but I think tax payers got stuck with about 10 billion of the TARP bailout (as of 2014).

http://money.cnn.com/2014/05/29/news/companies/gm-profit-bailout/

GM is doing okay now but I wouldn't be a buyer. The Ven. news didn't seem to have an effect of their stock. Actually up a little today.

 

You can speak for Trump I guess, I have no investments in companies that manufacture overseas.

 

I wonder if this will have any impact on other automakers who are outsourcing.

I don't like outsourcing, but it does seem un-American (and just unkind in general) to be cheering for an American company to fail. Plus I like GM vehicles. I would never own another truck, 3/4 ton or bigger, that wasn't GM/Chevrolet, I've spent a lot of years and miles hauling things.

 

Ford for sure. There are also several other US companies that manufacture or have subsidiaries in Venezuela. Apparently some are stopping production and leaving. Coca-Cola, Bridgestone, Kimberly Clark, Proctor & Gamble, Colgate & General Mills. I'm sure there are others.

Most US companies in Venezuela are not outsourcing. They are producing consumables for Latin American Markets. Mexico is a different story.

http://www.foxnews.com/world/2016/0...ela-to-escape-country-collapsing-economy.html

 

http://abcnews.go.com/Business/wireStory/gm-halts-operations-venezuela-factory-seized-46906559

The factory seizure arose from an almost 20-year-old lawsuit brought by a former GM dealership in western Venezuela. The dealership had been seeking damages from GM of 476 million bolivars — about $665 million at the official exchange rate


They lost the factory, cause they lost a big lawsuit filed against them.

 

The last time I was there the black market for dollars was insane. This was 20 years ago. Simon B's aren't worth more than toilet paper. Black market exchange then was 20 to 1 even considering valuation. Sizzling hot play dates could be had for $5 american. This is Bernie Sander's Utopia.

 

It's kind of hard NOT to halt operations after your factory is seized.

Isn't it ??

 

No surprises there, good for Venezuela.

 

What is liberal about this ?