Venezuelan Government Seizes GM Plant
Venezuela seized a GM plant last week, which is a further sign that Venezuela’s economic crisis is getting worse. Peter Quinter, Miami-based chair of law firm GrayRobinson’s Customs and International Trade Law Group, stated:
GM is not the first and they’re not going to be the last because the government of Venezuela is desperate for any assets they can take. It really is a vicious cycle they’re in.
The move by Venezuela comes during a period of high unemployment, high consumer prices, and low oil prices. Venezuela’s generous social programs and failed economic policies have also contributed to the economic crisis. Venezuela’s government has seized the assets of other U.S. companies in the past such as Clorox in 2014 and glassmaker Owens-Illinois in 2010. Other automakers such as Toyota and Fiat have reported that their operations in Venezuela have been operating normally, but it certainly seems as if other U.S. companies operating in Venezuela are at risk of being seized.
Hopefully, GM can come to an agreement with the Venezuelan government to recover its seized assets.
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