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Posts Tagged ‘GM Venezuela’

Venezuelan Government Seizes GM Plant as Economy Melts Down

“Illegal seizure” comes amidst growing protests over political, consumer morass.

by on Apr.20, 2017

The GM plant in Valencia employs 2,678.

General Motors has accused the Venezuelan government of an “illegal judicial seizure of its assets” and vowed to “take all legal actions” to regain control of its plant in the city of Valencia.

The unexpected move by the embattled government of Venezuelan President Nicolas Maduro is the latest in a series of moves meant to nationalize foreign-owned assets first started by former President Hugo Chavez. It comes as hundreds of thousands of citizens have been taking to the streets to protest what opposition leaders have described as an increasingly “dictatorial” situation.

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“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,” GM said in a statement.

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GM Taking $600 Mil Charge Due to South America

Devaluation of Venezuelan bolivar forces maker’s move.

by on Jun.30, 2015

GM will take a $600 million charge due to Venezuela's move to devalue its currency.

In a move that signals another round of trouble for automakers operating in the Venezuela, General Motors expects to record a pre-tax charge of approximately $600 million due to the company’s devaluation of its currency.

The “re-measurement” charge is for the Automotive cost of sales in the South American country for the second quarter of 2015, GM said in a new filing with the Securities Exchange Commission. GM will report its second-quarter financial results July 23.

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It will be treated as a special charge for EBIT-adjusted reporting purposes. GM does not expect this decision to impact its South American or Venezuelan operating results, nor does it believe it will affect 2015 adjusted free cash flows, according to GM’s filing with the SEC. (more…)