Venezuelan Authorities Seize GM Plant
Venezuelan government authorities took control of General Motors’ Valencia plant on April 19, seizing company vehicles and other assets. GM will cease operations in the country, effective immediately, the company announced.
“The seizure was granted and enforced in total disregard of [General Motors Venezolana’s] right to due process, causing irreparable damage to the company, its 2,678 workers, its 79 dealers (the country's largest service network with more than 3,900 workers), and to its suppliers (representing more than 55% of the auto parts industry in Venezuela),” according to a company statement.
As a result, GM will lay off over 2,600 workers, but will be paying its employees separation benefits.
“GMV strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions, within and outside of Venezuela, to defend its rights,” according to the statement.
According to reporting from CNN, GM’s Venezuelan plant was no longer producing cars. In 2015, the plant ceased production and since then has been only selling spare parts.
Going forward, GM will leverage its network of dealers to provide aftermarket service and parts for its customers, the company said.