CARACAS, Friday February 07, 2014 | Update

General Motors sees no resolution to operations in Venezuela

According to the Venezuelan Automobile Chamber (Cavenez), car sales slumped 87% in January

Unions reckon presidential decree violates their rights (File photo)
Friday February 07, 2014  11:59 AM
Concerns among multinational corporations continue growing amid Venezuela's economic situation. General Motor's chief financial officer, Chuck Stevens, said the company saw no horizon or resolutions to business operations in Venezuela, EFE reported.

He underscored that the results in South America in the first quarter would be weaker manly due to lower production in Venezuela. The chief financial officer noted that the company recorded an extraordinary loss of USD 162 million upon the devaluation of the Venezuelan bolivar.

According to the Venezuelan Automobile Chamber (Cavenez), car manufacturing and sales in January plummeted 84.78% and 87%, respectively. 

In this scenario, workers from the automotive industry have expressed their concerns, and fear they end up losing their jobs due to the lack of foreign currency, the enforcement of the Presidential Decree 625, and the import of vehicles by the Executive Office.

According to sources in the car industry, such presidential decree violates workers' rights, as it eliminates workers benefit to buy a car per year. "It violates the provisions set forth in the collective bargaining agreement and puts production and our jobs in jeopardy."

Translated by Jhean Cabrera
  •  Read