General Motors has had it’s plant in Venezuela seized by local authorities in what GM is calling “an illegal judicial seizure of its assets”.
This past Wednesday anti-government protesters in Venezuela collided with authorities, in an already troubled country with incredibly economic troubles, triple-digit inflation, and food shortages.
A GM spokesperson stated that the plant was taken despite the right to due process. The company will defend itself as much as it can, legally, and they’re confident that they will win.
GM employees about 2,700 workers in Venezuela. Along with 79 dealers that employee 3,900 people and multiple parts suppliers, they more than make up half of the troubled countries auto parts market.
If the government permits it, workers will get separation benefits “arising from the termination of employment relationships due to causes beyond the parties’ control,” the GM statement said.
As a result of the issues facing the country, and believe me they are huge, many companies have cut back operations in Venezuela. Bridgestone, last may, sold its businesses located in the country after 6 decades of operations.
And lots of other multinational companies are abandoning their investments there including Halliburton, Ford, Procter & Gamble.