by Editor News
The spokesman of the company Eduardo Arguelles told the media about this “difficult decision” of no longer producing the tyres in the country due to the economic contraction being at its worst condition.
Goodyear Tyre and Rubber Co. have decided to halt the production of tyres in Venezuela. According to the officials, the company took this step due to the economic strain and crisis strike in South American country.
The spokesman of the company Eduardo Arguelles told the media about this “difficult decision” of no longer producing the tyres in the country due to the economic contraction being at its worst condition. This contraction is even worse than the U.S great Depression. Apart from this, the U.S sanctions have made it impossible for the company to go further with the plan and maintain its operations. Commenting on this Arguelles said, "Our goal had been to maintain its operations, but economic conditions and U.S. sanctions have made this impossible."
In recent years, the company had endured millions of loss at Venezuela due to Bolivar plummeted in value against the U.S dollars. This Ohio based company started to disintegrate its Venezuelan subsidiary in the fourth quarter of 2015 but still continued to operate with a staff of around 1100 in the era of crisis in the city of Valencia. The workers were amused to see and find that it was no longer in operation. There was no immediate response from the government too.
This announcement was done via a source of a letter quoting “ To whom it may concern” circulating online and it stated that the company has been forced to seize the operations and that no one will be authorized to continue producing the company’s products from Monday onwards. The letter also stated that Goodyear will fulfil all the financial obligations to the workers.
It is not just Goodyear but many other big companies are also becoming a part of the growing list of corporations that have seized their company in Venezuela. Some of those enterprises, like General Motors, have their factories and other valuable assets being seized by the Government. Others decided to cut their losses because all the factors that were making the business difficult. These factors included shortages, inflation and currency. Companies like Kellogg, Bridgestone, General Mills and Kimberly Clark have also reduced their business due to the same situation.
Many workers have spent decades working in Goodyear and do not know how to meet their personal needs with the loss in the source of income. This whole situation has created grave consequences for the 1100 working class people. The International monetary fund had estimated further inflation in Venezuela could top 1 million per cent by the end of the year.
The president of Venezuela, Mr Nicolas Maduro, initiated and activated the economic recovery plan in August. The plan targeted to improve different factors of the economy by taking measures like increasing the minimum wage and printing new currency, but the signs of improvement in the economy seem to be very negligible.
Named as Mahindra Thar 700, the company plans to make only 700 units of this off-road ...Read More
China-owned MG Motors first car in the Indian market is the SUV Hector, which is scheduled to ...Read More
Uber XS is a new ride category for Uber India. This category will offer personal mobility in ...Read More
Hyundai Motor is all set to introduce the N brand in India. N is the performance group of ...Read More
Toyota Glanza is all set to launch in India. It is the first offering to come in the market ...Read More
Michelin and General Motors will execute the research work in partnership. Both the companies ...Read More
Mahindra & Mahindra said that it will switch to the BS-VI emission norms ahead of ...Read More
This step can prove out to be beneficial for Bajaj electric vehicles as the government is ...Read More
Tata Motors on Friday disclosed its partnership with Indian Oil for an initiative known as ...Read More
IIT Madras-based electric bike producer, Ather Energy on Thursday reported the establishment ...Read More