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General Motors Transfers Part Of Colombia Output To Venezuela

BOGOTA -(Dow Jones)- General Motors Corp. (GM) will transfer part of its Colombian production to Venezuela because of a restriction Venezuelan government has put on imports, the company said in a statement.

GM's local unit planned to export about 14,600 cars from Colombia to Venezuela in 2008, up from 11,066 cars in 2007, company spokesman Eugenio Hoyos said Wednesday.

The Venezuelan government, in a bid to boost production from the country's car assembly lines, reduced quotas for car imports from everywhere else.

Car sales in Venezuela jumped 43.3% in 2007 from the previous year, pushed by a drastic increase in the purchase of imports. While sales of imported cars jumped 81% in 2007 from the previous year, sales of domestically manufactured cars fell 1.3%, according to a report from the Associated Press.

As part of the new quotas, GM received the authorization to sell only 8,500 cars from Colombia in Venezuela in 2008, the company said in the statement. GM will fill the difference by boosting its production in Venezuela, Hoyos said.

Before the change in quotas, the Colombian unit of General Motors was planning to assemble 70,000 cars in 2008, up from 52,000 cars in 2007.

The problem, though, for GM is the 3,500 cars stuck in transit the Venezuelan port of Puerto Cabello since Jan. 8.

The company doesn't plan to fire anyone in Colombia but it will cut its new hiring from the 470 it had planned for 2008, though it declined to specify how many people it will hire.

General Motors will invest $51 million in Colombia in 2008.

-By Inti Landauro, Dow Jones Newswires; 57-1-600

http://money.cnn.com/news/newsfeeds/articles/djf500/200802061933DOWJON...

By hongo_joe on Feb 7, 2008, 14:16 in Friendly Talkzone.

hongo_joe says on Feb 7, 2008, 14:21:

What’s good for the country is good for General Motors, and vice versa

A statement made by Charles E. Wilson while president of the General Motors Corporation. Wilson later became secretary of the federal Department of Defense.

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miamimike says on Feb 7, 2008, 15:18:

Here's what I find funny, all the time you hear people say how tough life Economically is in Venezuela then how do you explain the Following statement "Car sales in Venezuela jumped 43.3% in 2007 from the previous year, pushed by a drastic increase in the purchase of imports. While sales of imported cars jumped 81% in 2007 from the previous year, sales of domestically manufactured cars fell 1.3%, according to a report from the Associated Press."

My Avatar-- Sarah Palin Says " "You know the difference between a pit bull and a hockey mom?? Lipstick!" Now on a Short Verbal Tether by the Honorable John McCain

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vladimiro says on Feb 7, 2008, 15:24:

"will transfer part of its Colombian production to Venezuela because of a restriction Venezuelan government has put on imports, the company said in a statement."

That's what the import restriction was designed to do. Increase local production. Like raising gas prices, looks like its another wise economic decision from Venezuelan government that previous governments were not able to implement.

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hongo_joe says on Feb 7, 2008, 15:35:

MM - maybe the Chavez cabinet stocking up on Mercedes. In Kenya they call them (the politicians) 'wabenzis'.

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sloopskipper says on Feb 7, 2008, 16:49:

Doesn't say much for the production in Venezuela if they prefer GM cars from Colombia to GM cars made at home.

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miamimike says on Feb 7, 2008, 17:24:

Hongo Joe--I believe its not only Mercedes because its been in the Miami Herald Business Section various times about how there has been Records set for Cargo of all types shipped to Venezuela from Miami. Items such as Oil Field equipment, Home remodeling supplies, Medical and Computer equipment ect.Every year it shows how last year's shipping record was broken by the current year's Shipments. Like they say, "Liars Figure but Figures don't lie",,,LOL,,,and the figures were tabulated here in the USA,,,

My Avatar-- Sarah Palin Says " "You know the difference between a pit bull and a hockey mom?? Lipstick!" Now on a Short Verbal Tether by the Honorable John McCain

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tasco66 says on Feb 8, 2008, 05:18:

“That's what the import restriction was designed to do. Increase local production. Like raising gas prices, looks like its another wise economic decision from Venezuelan government that previous governments were not able to implement�?

Vlad if you think that world wealth was built on protectionism, you are dead wrong

Bravo, Presidente Uribe for the perfect operation!

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El Piloto says on Feb 8, 2008, 08:53:

Where in Colombia does GM have assembly plants?

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