GM: Venezuela not supplying enough import dollars

[Zorro]

Source: AP

General Motors Corp.'s Venezuela affiliate said Tuesday that authorities will sell the company $430 million in dollars to import parts -- but that won't be enough to pay down debts and restart operations.

The Venezuelan government has promised to supply GM with $430 million through December 2009, GM's president in Venezuela, Ronaldo Znidarsis, told reporters.

But the gesture "doesn't resolve the problem," Znidarsis said. GM has accumulated some $1.15 billion in debts to foreign providers, he said -- prompting the company to halt its Venezuela car production on Friday.

"International providers will not send us any more material until we present them with a concrete payment plan for outstanding debts," Znidarsis said upon leaving a meeting with Venezuelan lawmakers over his company's situation.

Read more: http://finance.yahoo.com/news/GM-Venezuela-not-supplying-apf-2918224499.html?x=0&.v=1

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First the oil workers, now the auto workers...

Sounds as if Chavez' economic policies are working their magic on the Venezuelan economy...

[WriteDown]

1. When did GM become a division of Coke Zero?

Another one of Coke Zero's nefarious schemes to impugn Chavez I see.

[Rage for Order]

2. An important part of the article not included in the OP...

"Under currency controls imposed President Hugo Chavez in 2003, Venezuelans must apply to a government agency for dollars to import goods or take vacations abroad."


In case anyone was wondering why GM needs Venezuela to provide import dollars. My, what a lovely, freedom-loving country! Want to buy something form oversees? You have to get a government agencyy's approval to do that. Want to use dollars on an out-of-country vacation? Yep, you need the approval of a government agency for that, too.

:eyes:

[dipsydoodle]

3. Was like that in the UK in the past

My, what a lovely, freedom-loving country...........

[WriteDown]

4. The UK also had slavery "in the past."

Still seem like a good idea?

[Rage for Order]

9. "But mom, Susie's parents let her do it!!!!!"

Waaaaahhhhhhh!!!!!!!!!

:rofl:

Obviously, if another country did the same thing then it must be a great policy. And at this point, no, I would not call Britain a freedom-loving country. Take a walk around London and look at all of the CCTVs that watch the citizens' every move.

[dipsydoodle]

12. The subject was actually exchange controls.

.

[dipsydoodle]

5. Don't you ever give up posting non LBN ?

DU Rules for LBN.....Do not post news that is more than 12 hours old.

Check the time on your link : Tuesday June 23, 2009, 7:09 pm EDT

[WriteDown]

6. Are you a time cop?

Seems like you are just trying to douse any stories that ridicule Chavez.

[dipsydoodle]

7. Nope

and

[Tempest]

8. You, on the other hand

Are willing to break the rules of the forums just to slam Chavez.

Not this thread, but there have been others you've posted against the rules and the monitors shut them down.

[WriteDown]

10. Please post some examples

of my rule breaking to slam Chavez.

[EFerrari]

11. Right. In Ven, the workers are looking at a four week shut down.

And here, they are going to be out 4k jobs by October.

[ohio2007]

13. "International providers will not send us any more material until we pay what we owe them ".... duh

International providers will not send us any more material until we present them with a concrete payment plan for outstanding debts



The #1 pitfall when you "Rule By Decree"

[ohio2007]

14. Government to use USD 2 billion for car assembly plants

snip

Economy
The Venezuelan government is getting ready to allocate USD 2 billion for the car sector imports in order to meet the need for spare parts, which has led some of the car assembly plants, such as General Motors (GM), to halt their operations.

The Ministry of Science, Technology and Intermediate Industries announced on Monday in a communiqué that the budget of the car sector for the rest of the year is of "USD 2 billion, including also the budget for spare parts suppliers." As stated in the communiqué, this measure will cover the contingency in the short term. "Efforts are being made to set a constant flow in the authorization and payment of foreign currency for the sector," said the government

snip

http://english.eluniversal.com/2009/06/22/en_eco_esp_government-to-use-us_22A2408087.shtml


GM was bailed out by the US gobmit.... they should "spread the wealth" instead of demand payment for inventory built by laid off US auto workers.

:sarcasm:

[damntexdem]

15. Maybe GM needs to find an Argentinian lover.

Look at how will it worked for Mark Sanford. ;-)