Two days back, General Motors Venezolana (GMV) was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been taken from its facilities. GM has condemned the seizure calling it illegal.
In a statement issued, GM said: “Established in 1948, General Motors Venezolana (GMV), the oldest and most traditional automaker in the country, and market leader for more than 35 consecutive years, is forced to cease operations in Venezuela due to an illegal judicial seizure of its assets... 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 (the country's largest service network with more than 3,900 workers), and to its suppliers (representing more than 55% of the auto parts industry in Venezuela).
"As a consequence, GMV announces the immediate cessation of its operations in the country, and ensures (as far as the authorities permit) payment of the employees’ separation benefits arising from the termination of the employment relationships due to causes beyond the parties’ control.
"GMV 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 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.”