GM closes Venezuela plant, fueling economic fears

I wonder why they didn't just shutdown the US and make them all in Venezuela? US is too expensive.
http://finance.yahoo.com/news/GM-closes-Venezuela-plant-apf-1390741079.html?x=0&.v=2
GM closes Venezuela plant, fueling economic fears GM closes Venezuela plant, suspending local car production and fueling economic fears CARACAS, Venezuela (AP) -- General Motors Corp.'s Venezuela affiliate temporarily shuttered a local assembly plant on Friday, suspending all car production in Venezuela and boosting fears that the closure could further slow sputtering economic growth.
GM suspended operations for at least three months at its auto assembly plant in Venezuela's central Carabobo state, affecting 1,600 full-time employees who will see their salaries cut to minimum wage during the shutdown. A smaller plant that produces trucks will continue operating in a nearby town.
Car sales soared in Venezuela in recent years as high oil prices fueled a consumer spending boom. In March, the sector employed 40,000 people and indirectly created another 100,000 jobs, according to Venezuela's Automotive Chamber.
GM is the country's largest automaker, producing more than half of the 54,000 cars assembled in the first five months of 2009, according to the chamber.
But auto output had already declined by 9.7 percent this year through May as government currency controls restricted imports, pushing GM to close its doors.
The controls, imposed by President Hugo Chavez in 2003, have prevented GM from getting the dollars it needs to import car parts, stalling sales and leaving the company with $1.2 billion in debts to foreign suppliers that it can't get the dollars it needs to pay up.
But lower oil prices, now 51 percent below July's peak, have left crude-reliant Venezuela without its main source of foreign currency, making it more reluctant to part with dollar reserves and forcing it to cut back on dollar sales to importers.
GM's operations could be halted for more than three months if the company doesn't get permission to buy dollars soon, GM's Venezuela chief Ronaldo Znidarsis said in May.
The government plans to sell auto manufacturers $2.5 billion in dollars this year so they can buy car parts, Trade Minister Eduardo Saman said on Thursday -- though he did not say when that sale would happen or if GM would benefit.
"We know when we're leaving, but we don't know when we're coming back," a GM official said, asking not to be identified because she said she was not authorized to talk to reporters.
Local businessmen worry that GM's shutdown will slow other sectors of Venezuela's economy, said Tulio Hidalgo, president of the Carabobo state chapter of the Fedecamaras business chamber.
Venezuela's economy expanded by 0.3 percent in the first quarter, down from 5 percent in the year-ago period.
Hidalgo said that nearly 45 percent of Carabobo's small and medium-sized businesses -- from banks that provide consumer credit, to transport service companies -- will be affected by reduced automotive output.
Ford Motor Co., Chrysler Llc, Toyota Motor Corp., Mitsubishi Motors Corp., Mack de Venezuela and Iveco Venezuela also produce cars in Venezuela, but haven't closed any plants this year -- though Toyota and Mitsubishi both briefly halted production amid labor strikes.
In May, GM said it employed 4,000 people in Venezuela and had indirectly created another 70,000 jobs.
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For a guy who professes to know so much about automobile manufacturing, you don't know $#it! What makes you believe a manufacturer can simply move production of one chassis to another facility? Are you really that dumb?
Do you really think anybody are were you spend your money

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Like said, for a guy who professes to know so much about AUTOMOBILE manufacturing, you don't know $#it!
An AUTOMOBILE manufacturer can NOT simply move production of one chassis to another facility that was building vehicles on another chassis, it is like saying they can use the same equipment to make boats, dummy.

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Canuck your know it all ego would fill a barn. have you ever been in a GM plant. The ability to change styles etc is based on volume, cost,etc. The know how is not a deep dark secret. Tooling for auto production is very expensive the more features you add the more it costs. To run a Saturn Aurs, Chev. Malibu, and Pontiac G6 on the same assy line is no problem and it fills up the line full time. Too add a small truck would not be too difficult would add much more cost. much more efficient to add all trucks, vans etc to the same line. I think in the past few days you called us GM supporters wanks and whiners, i think you should look in a mirror and see the tear streaks under your eyes, now just fold your arms across you chest, run to your room, slam your door, put your head under the covers and whine too your self. we are all out too get you and your money. nighty night little boy come back when you grow up. .

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if it dosnt bother you why do you keep whining about it. I am not too happy with the way some of the things are going, but what is the alternative, all of the congressmen that ware against it are now all upset because gm wants to close a few plants and underperforming dealers. If they would have gone chapter 7 like the congressmen wanted it would have caused a major unemploymnet crisis in the US. The cost of the bailout is not half of the 90 billion that AIG sent to german and china banks as insurance paymets on bad loans thats we have no chance of getting back, never hear about this anywhere

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Labor is not cheap in Venezuela, due to the communist reforms of Hugo "El Chancho" Chavez.
Any foreign company would be well advised to study that situation very carefully before trying to enter there, or deciding whether to stay there.
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| >I wonder why they didn't just shutdown the US and make them all in | >Venezuela? US is too expensive. | | Labor is not cheap in Venezuela, due to the communist reforms of Hugo "El | Chancho" Chavez. | | Any foreign company would be well advised to study that situation very | carefully before | trying to enter there, or deciding whether to stay there. |
Is the announced new plant in Brazil still being built??
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Be the only, but good reason to shut it down then. GM should look at Ford in Brazil.
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