According to information from General Motors, General Motors Venezolana, its local subsidiary, has been seized by Venezuelan authorities.
It was unexpectedly taken by authorities, preventing normal operations at both its manufacturing facilities and 79 dealers in the country. As a result, GM is proceeding with separation benefits “as far as the authorities permit” for the 2,678 workers affected by the closure of operations.
GM has announced that it is proceeding to regain control of its operations through domestic and international legal venues.
Venezuela’s vehicle industry has been severely affected in recent months due to the lack of raw materials stemming from currency controls, stagnant local production and low consumer confidence. Production plants were functioning at reduced capacity amid a deep economic and political crisis that has sparked weeks of street protests.
In early 2015, Ford Motor Co F.N wrote off its investment in Venezuela when it took an $800 million pre-tax write-off.