Bad day for GM

[xoxoxoBruce]

You are probably aware that Venezuela is in turmoil with 2.5 million protesters in the streets yesterday. GM got a surprise too.

"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.

[tw]

The money games played by Chavez ten plus years ago are only now appearing on spread sheets. That is how business and economics works. If Maduro does not change/fix the problem, then things will only get worse. Unfortunately, that means massive economic pain on the poorest people because the 'money changers' (ie Chavez) were mortgaging their future.

So what will inevitably happen? Civil war? Massive riots? Invasion by neighboring countries? Which options are most likely? Will another Cuba result in Venezuela?

Venezuela exports oil. It must import most everything including toilet paper and soap. Shelves are empty. Nobody wants to sell to Venezuela that owns long unpaid massive debts all over the world. What event will finally force a change?