GM Says Adios To Venezuela As Plant Is Siezed

[Gorehamj]

John Goreham
Contributing Writer, GM-Trucks.com
4-21-2017

General Motors has announced that its plant in Valencia and other assets of the company have been illegally seized by the judiciary of the country of Venezuela. GM at one time produced vehicles in the plant for the local market but ceased operation in 2015 as the country's economy devolved into chaos. As recently as this week GM still had Venezuelan employees on the payroll.

 

GM issued the statement below this post. In recent years, GM had offered three Chevy models for sale in the country. The Orlando, a compact/midsize crossover with three rows (that we don't have an equivalent of here), the Cruze, and the Aveo. GM also sold a commercial truck in the country.

 

For background on how GM ended up in this situation, please see this Detroit Press link.

For general background on the situation in Venezuela, please see this link.

 

GM's Statement in part:

"Yesterday, GMV’s plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities. The seizure was granted and enforced in total disregard of GMV’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). As a consequence, GMV announces the immediate cessation of its operations in the country, and ensures (as far as the authorities permit) payment of the employees’ separation benefits arising from the termination of the employment relationships due to causes beyond the parties’ control. 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."