Ford's Venezuela unit offers buyouts as output dwindles: sources

[Eugene]

Source: Reuters

BUSINESS NEWS DECEMBER 5, 2018 / 4:10 PM / UPDATED 2 HOURS AGO

Ford's Venezuela unit offers buyouts as output dwindles: sources

CARACAS (Reuters) - Ford Motor Co (F.N) is offering buy-outs to staff at its moribund plant in Venezuela to reduce its payroll, two union leaders said, as the U.S. automaker seeks to streamline its money-losing South America operations.

Ford’s unit in Valencia, which has not received any orders for 2019, is offering the equivalent of $150 for each year worked to all 915 employees at the plant, the union leaders told Reuters, asking not to be identified because they were not authorized to talk to the media about the issue.

Ford would not confirm the report, and emphasized instead that operations would continue in Venezuela, which is suffering under a hyperinflationary economic collapse.

“Ford works diligently to adapt to the local conditions and continue serving customers with products and services,” Ford said in a statement on Wednesday. “Ford has been operating in Venezuela for 56 years and has no plans to leave the country.”

-snip-

Read more: https://www.reuters.com/article/us-ford-motor-venezuela/fords-venezuela-unit-offers-buyouts-as-output-dwindles-sources-idUSKBN1O42NY

[GatoGordo]

1. $150 is a kings ransom in Venezuela.

And $150 per year? Its a sweetheart deal... IN VENEZUELA, where the monthly minimum wage is about $5. Or $4. Or $3... depending on which day of the week it is since the last unilateral "adjustment" to the minimum wage.

The Bolivar is nearly worthless. I HOPE Maduro allows the wages to be paid in dollars. (He will, so long as Chavismo gets a cut). Maduro might insist that Ford pay them in the mythical Petro... the cryptocurrency of Venezuela that nobody can redeem. Only purchase. With a currency other than the worthless Bolivar.