We have a tad more context surrounding the Venezuela and the state authorities’ decision to seize General Motors’ manufacturing plant, a move the automaker called “illegal.”
According to The New York Times, it wasn’t Venezuelan authorities who first took control of the plant, instead, union members have supposedly been in control of the facility for some time — 42 days, to be exact.
The plant’s takeover is reportedly due to an unsettled lawsuit between an angry dealer group and GM itself over torn up contracts. In turn, the dealer group demanded billions of dollars in compensation. GM responded by saying the figure “exceeds all logic.” So, the union took control of the plant.
Following GM’s official decision to appeal the government to return the factory back into its hands, government authorities took the plant for itself instead. The report states company managers are no longer allowed inside the facility, but union members are.
General Motors hasn’t produced a vehicle at the Valencia-based industrial hub since 2015 as resources have continued to dwindle in the country. The automaker’s legal options are slim, too.
Though, GM has vowed it will take a legal necessary action to defend its rights in the country.
Comments
Dealers – working together with unions. Howz that for your capitalist-vs-communist world? Who could a good alt-riter support on this one?
Don’t forget, alt-rite folks are SMALL business supporters, grass roots capitalists who like a man who has built his business with his own hands. The dealer principal who invested his own blood/sweat/tears into his operation. It’s why we have no-direct-sale laws isn’t it?
GM itself has gone to court to protect the dealer model against the evil Tesla.
Yet, here are unions HELPING DEALERS! Unions agreeing with dealers about the corporation owing all of them.
How is a Right winger going to cope? They’ll probably need a safe space to intentionalize their feelings of snowflakery.
Well said, this only happens in socialist countries…. wonder why……
You mean a dealer group in the US never once lobbied to protect its sales model?
If grocery shelves are empty and toilet paper has to be rationed, how can people afford to buy new GM vehicles? It sounds like a lose-lose situation for GM, the Unions, the dealers and the people of Venezuela. How sad that a great country has ended up in such a situation.
Probably a good time to call in a B-52 carpet bombing raid on the plant so it cannot be used for any other industrial purpose by the government there as well as sending them a hell of a good message!
THIS gets thumbs up??? And Observer7 gets a thumbs down?
It is good that now the facts do emerge from the dust of the initial announcements.
When a Government makes bad things happen, people, businesses and investments all go bad with it.
Venezuela is no place for any successful positive business to want to be involved with anymore.