Goodyear permanently ceases Venezuela operations

[Eugene]

Source: Reuters

BUSINESS NEWS DECEMBER 10, 2018 / 10:03 AM / UPDATED AN HOUR AGO

Goodyear permanently ceases Venezuela operations

Corina Pons
3 MIN READ

CARACAS (Reuters) - Goodyear Tire & Rubber Co (GT.O) is halting operations in Venezuela because of dire economic conditions and U.S. sanctions, the company said on Monday, part of an exodus of foreign corporations from the country.

Demand for consumer goods has plummeted and firms are unable to import raw materials, leading companies ranging from Kimberly-Clark Corp (KMB.N) to Kellogg Co (K.N) to leave for good.

“Goodyear-Venezuela has made the difficult decision to stop producing tires,” the firm said in a statement. “Our goal had been to maintain its operations, but economic conditions and U.S. sanctions have made this impossible.”

The statement did not offer details on how the operations had been affected by sanctions against Venezuela, a member of OPEC.

-snip-

Read more: https://www.reuters.com/article/us-goodyear-venezuela/goodyear-permanently-ceases-venezuela-operations-idUSKBN1O91R5

[GatoGordo]

1. There are no US sanctions effecting the Venezuelan people

1. No refinancing of Venezuelan oil debt by US entities. This does not prohibit any other entity from refinancing PdVSA debt (aka "hunger bonds", courtesy of Goldman Sachs.)

2. US citizens, government and business entities are prohibited from doing business with aproximately 40 corrupt Chavistas in leadership positions in Venezuela.

Venezuela is free to buy whatever it needs from any source, including the US. Food, medicine, raw materials, oil products. The problem is Venezuela has to pay cash, because they defaulted on their oil debt. And their best friends (Cuba, Nicaragua) have no money to lend, and even good chums China and Russia won't lend them a dime... Maduro recently got called to the carpet by China for stonewalling on their debt repayments. Almost all of Venezuelas plummeting oil production now goes as "payment in kind" to Russia and China... leaving Venezuela with nothing to buy imports with.

[GatoGordo]

2. As expected, Maduro says he will nationalize the factory for this "illegal act" against Chavismo!

If Maduro holds true to form (Kimberly-Clark, Smurfit Kappa, Kelloggs, Clorox, Bridgestone, GM, etc), the Chavistas will first loot anything of value from the factory, then gift the factory to the workers, who will now enjoy the "means of production".

Whereupon, the new owners (El Pueblo) with their new "means of production" will produce... nothing. Just like the Kimberly-Clark, Smurfit Kappa, Kelloggs, Clorox, Bridgestone and GM plants. Because that is what Venezuela produces an abundance of these days. Nothing.