RE: Why is any sane multi-national with stockholders continuing operations in this country?
GM has been in that country for DECADES.
What should the CEO have done when Chavez took over? Close it? It survived 10 years of Chavez and several years of Maduro, this was unexpected.
This should be a wake up call to other foreign companies to PLAN for anything similar.
What’s survival? Not being taken over by the government?
They did it to the oil companies, they did it to the food producers, they did it to the grocers.
They couldn’t order parts, they had no market. Why would they stay?
Is it something now that companies should just survive?
This is the equal of the left thinking companies exist to provide health care for their workers.
Given how things have gone in Venezuela the past five years I don’t think this was unexpected. Or at least, it should not have been.
I think around 10 years ago it would have become apparent that the plant’s days were numbered. I’m sure GM had no chance of successfully selling the facility, and I suppose the best course of action was to keep operating it for as long as possible.
I would be interested to know whether or not GM had made any recent upgrades or investments in the plant...which would have been a mistake.
I’d also like to think that they managed to arrange it such that their most outdated equipment went to this plant vs brand new stuff.
>>What should the CEO have done when Chavez took over? Close it? It survived 10 years of Chavez and several years of Maduro, this was unexpected.
This was utterly predictable. Companies doing business in a socialist country are playing Russian Roulette. The first chamber might be empty, but if you pull the trigger enough times...
Very true. Poor risk analysis on GM's part. Five environments need to be constantly gauged by any business executive: STEPC
My company had a plant there. It was seized last year.
Now the plant is shut down.