Originally Posted by DarkPhoenix13
Information is hard to come by, but here is what I'm finding. The GM plant at Valencia made cars for domestic consumption only. It seems that most GM models sold to the rest of South America are constructed in Brazil or Columbia.
The Valencia plant has been struggling since 2008. The big problem is paying debts to suppliers. Their production in 2009 was under 50,000 units; their target was 120,000.
The fact the factory was seized isn't much of a story, in my opinion. The writing has been on the wall. I think it's more interesting what Maduro got with this seizure. It's a factory that is sort of raw materials and complex equipment that I doubt they can repair.
So...if they stole a broken factory, then what does that say about the big picture? To me, it's a sign of desperation. This was done for the headlines. It's a distraction for a segment of the population in Venezuela that liked when Chavez did this sort of thing.
In reality, if the factory sits idle, they don't lose anything. These are civilian vehicles; if they were producing military equipment, then it would be a different story. Contrast what happened with GM against GoodYear. GoodYear hasn't been seized (yet) and they are still making tires. Why? Because a government vehicle is worthless if it doesn't have tires.
If GoodYear is seized, then I think things will come to a head. Speculation: 60/40 it becomes a civil war after the army chain of command fractures. It could also turn into a military coup. Maduro doesn't seem the type to surrender.
And now for the rest of the story.
The businesses and farms are both dependent on the government to obtain the parts they need to both produce goods and keep their equipment in repair. So, the government first shorts them on parts, and when production drops or quits the government seizes the business or the farm.
Then, since the government is incompetent, they very often end up running the farm or business out of business. That is why, in a starving country, much of their farmland has been abandoned and their business are vacant.