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Venezuela expropriates General Motors plant, forced to fire 2,700 workers

Automotive News

GM “strongly rejects the arbitrary measures taken by the authorities and will definitely take legal action both outside and inside Venezuela to defend their rights,” the company said.

General Motors (GM), the world’s third-largest automaker, announced today that it has stopped operating in Venezuela after the country’s government expropriated its plant on Wednesday.

Venezuelan authorities unexpectedly took over GM’s factory in Carabobo state on Wednesday, confiscating both the facilities and the car stocks, the company said in a statement, according to Efe Dow Jones.

The US auto group said it had been forced to lay off its 2,700 workers in the country.

GM “strongly rejects the arbitrary measures taken by the authorities and will definitely take legal action both outside and inside Venezuela to defend their rights,” the company said.

The Venezuelan government, which often blames the big companies for economic sabotage, has not made any statements about the expropriation that occurred on the day that there were protests across the country against the government. The Ministry of Information did not respond to requests for comments.

The government of Nicolas Maduro and his predecessor Hugo Chavez have expropriated more than 1,400 companies and private assets since coming to power in 1999, according to the confederation of industrial Conindustria.

Most of the expropriated companies have ended their activity, which has contributed to the unprecedented economic crisis that shakes the country.

POR EFE – CARACAS -20/04/2017  (Translation Soft)

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