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GM Shuts Down Venezuela Operation After Authorities Seized Its Plant

General Motors Venezolana said Thursday that it was forced to cease operations in Venezuela due to an illegal judicial seizure of its assets.

On Wednesday, General Motors Venezolan or GMV said its 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 , and to its suppliers.

As a consequence, GMV today announced the immediate cessation of its operations in the country, and ensures payment of the employees' separation benefits arising from the termination of the employment relationships due to causes beyond the parties' control.

GMV 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.

The company noted that it is confident that justice will eventually be served, and looks forward to continue leading the Venezuelan market. In the meantime, GMV, through its dealers, will continue to provide aftermarket service and parts for its customers.

by RTTNews Staff Writer

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