Yet Another American Company Pulls out of Venezuela Due to Economic Collapse

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American Company Pulls out of Venezuela
“Companies like ours sometimes have to make difficult decisions that reflect the changing needs of the market. The decision to change our business model is based on the current economic and political situation in Venezuela,” the company said in a statement released this week. (Source:┬áAxalta)

Espa├▒olAnother company has left Venezuela due to the economic crisis there caused by Nicol├ís Maduro’s reckless socialist policies. This time, it’s┬áAxalta Coating System, an┬áAmerican painting service.

On Tuesday, September 26, the Pennsylvania-based company released┬áa statement about its┬ádecision to stop production in Venezuela. “Companies like ours sometimes have to make difficult decisions that reflect the changing needs of the market. The decision to change our business model is based on the current economic and political situation in Venezuela.”

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Reuters reported that a long list of other companies have removed branches or stopped production altogether in Venezuela due to the volatile economy and fragile political atmosphere.

The company had 174 workers who lost their jobs as a result of the decision made by Axalta, whose plant was located in┬áthe country’s second-largest city of Valencia. Workers reportedly┬áreceived the news of their firing┬áthrough a memo and, according to testimony obtained┬áby Reuters, it was a “violent” and unexpected decision, even though “the company was reducing its production in the middle of the prolonged economic recession that the country is experiencing.”

Axalta reportedly plans to serve its customers in Venezuela through an┬á“import model” that is still in development. They join many international companies struggling to do business in the country, whose economy is too unstable for continued commercial investment, many experts have said.

Source: Reuters

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