General Motors said it has been forced to stop operating in Venezuela on Wednesday after one of its plants was illegally seized by local authorities.
The seizure, in the country’s industrial hub of Valencia, comes amid a deepening economic and political crisis that has sparked weeks of deadly street protests.
General Motors Venezolana, GM’s local subsidiary, said it “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.”
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The auto giant did not provide any details about its plant being seized, other than saying it “was unexpectedly taken by authorities, preventing normal operations.” It said other assets, “such as vehicles,” had also been stripped from the site.
Venezuela’s Information Ministry did not immediately respond to a request for information, according to Reuters.
As a result of the seizure, GM announced an “immediate cessation of its operations in the country.”
It said the authorities had “total disregard” and caused “irreparable damage” to the company and its 2,678 workers and 79 dealers in the country. GM said it would pay separation benefits “as far as the authorities permit.”
GM said it was “confident that justice will eventually be served, and looks forward to continue leading the Venezuelan market.”
Venezuela’s car industry has been in freefall, hit by a lack of raw materials stemming from complex currency controls and stagnant local production, and many plants are barely producing at all.
Venezuela’s government has taken over factories in the past. In 2014 the government announced the “temporary” takeover of two plants belonging to U.S. cleaning products maker Clorox Co which had left the country.
This is what always happens in socialist-run countries. The government first takes over companies by nationalizing them, and if foreign owned, the companies just leave, giving the socialist oligarchies a limited time-table to show the roaring crowds that they were actually doing something for the people, even though in the end, they really did nothing more than to lose thousands of jobs.
Venezuela was a first world country based on its natural resources, but today it’s a third world country based on socialist government. Contrary to the Maduro government blaming the United States for all of their woes there is no opposition force causing the plight of the Venezuelan people, who cannot get food, medicine and many other necessities of life. Their problems are 100% government-created, and if the recent protests mean anything, it’s that the Venezuelan people have caught on.
H/T NBC