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Viewing cable 08CARACAS600, US AUTOMAKERS' DIFFICULTIES CONTINUE IN VENEZUELA

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Reference ID Created Released Classification Origin
08CARACAS600 2008-04-30 21:58 2011-08-24 01:00 UNCLASSIFIED Embassy Caracas
VZCZCXRO2608
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHCV #0600 1212158
ZNR UUUUU ZZH
P 302158Z APR 08
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 1050
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHBO/AMEMBASSY BOGOTA 7777
RUEHLP/AMEMBASSY LA PAZ 2746
RUEHPE/AMEMBASSY LIMA 1022
RUEHQT/AMEMBASSY QUITO 2837
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY
RUMIAAA/HQ USSOUTHCOM MIAMI FL
UNCLAS CARACAS 000600 
 
SIPDIS 
 
SIPDIS 
 
HQ SOUTHCOM ALSO FOR POLAD 
TREASURY FOR MMALLOY 
COMMERCE FOR 4431/MAC/WH/MCAMERON 
 
E.O. 12958: N/A 
TAGS: EAGR ECON PGOV VE
SUBJECT: US AUTOMAKERS' DIFFICULTIES CONTINUE IN VENEZUELA 
 
REF: CARACAS 535 
 
1. (SBU) On April 29 labor negoiations between General Motors 
(GM) and its union reached a breaking point.  GM Venezuela's 
legal counsel confirmed media reports that GM stopped 
production as a result of the impasse.  In response to the 
halt in production, GM workers rioted, damaged 28 cars, and 
blew up a gas tank.  Two employees were injured.  (Note: 
Media reports erroneously stated that 780 vehicles were 
damaged. End Note.) 
 
2. (SBU) GM then reached an interim agreement with the labor 
union "Syndicate of Winning Socialists" on April 30 and 
resumed normal production of 400 vehicles per day.  GM was 
able to resume production when they met the union's demands 
for improved cafeteria food and better quality toilet paper. 
Production may halt again if GM cannot come to an agreement 
with the union on their proposed salary increase of roughly 
USD 16 per day versus GM's offer of USD 9.50.  Production is 
continuing normally at Ford and Goodyear.  Both reached 
hard-fought agreements with their unions in 2007. 
 
3. (SBU) Chrysler, which halted production in March 2008, 
plans to re-start in mid-May (reftel.)  Chrysler Venezuela 
President Luis Perez De La Cruz told the Embassy Chrysler 
halted production because they could not get enough dollars 
from CADIVI, the BRV foreign exchange agency, to pay their 
suppliers.  De La Cruz went to CADIVI weekly requesting the 
funds which CADIVI finally released the second week in April. 
 
DUDDY