logo
Share SHARE
FONT-SIZE Plus   Neg

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Dutch semiconductor equipment maker ASML Holding NV reported Wednesday higher profit in its third quarter as sales were boosted mainly with strong demand for DUV Systems. Meanwhile, margin declined. Looking ahead, the company projects sequentially lower sales in its fourth quarter. For fiscal 2017, the company maintained forecast for higher sales. Leaders of the Senate Health Committee revealed Tuesday they have reached an agreement on legislation to provide short-term stability to Obamacare. Committee Chairman Lamar Alexander, R-Tenn., and ranking member Patty Murray, D-Wash., announced the bipartisan agreement. Activist investor Rudolf Bohli is reportedly targeting Switzerland's second largest bank Credit Suisse. Bloomberg reported that Bohli has 0.2 percent stake in Credit Suisse that comes around 100 million francs or around $102 million.
comments powered by Disqus
Follow RTT