The Globe and Mail reports in its Wednesday, May 3, edition that General Motors said on Tuesday
it would take a charge of up
to $100-million (U.S.) after a
judge ordered the seizure of its
plant in Valencia last month, a
move that prompted the halting
of its operations in Venezuela.
A Reuters dispatch to The Globe reports that GM
said it was deconsolidating its
business in the country following
the seizure of its Valencia
plant on April 18 by judicial authorities,
which led GM to fire
2,700 workers. The plant had not
produced a car since the beginning
of 2016 because of parts
shortages and strict currency
controls.
GM said executives
have expressed a willingness "to
talk with government officials
and union leaders about the circumstances
under which it could
be possible to start production
and employ some number of
workers with a new, viable business
model."
Total auto production in Venezuela
fell to a historic low of
2,849 cars in 2016, about 75 per
cent less than the year before.
In the first two months of 2017,
total Venezuelan auto production
was just 240 vehicles, down
50 per cent over the same period
last year.
Declining auto production
comes amid rising protests.
© 2024 Canjex Publishing Ltd. All rights reserved.