DETROIT – General Motors has stopped doing business in Venezuela after authorities took control of a factory in what GM called an illegal judicial seizure of its assets.
The plant was seized on Wednesday as anti-government protesters clashed with the authorities in a country that has been roiling in economic problems such as food shortages and triple-digit inflation.
The Detroit automaker said in a statement on Thursday that the other assets such as cars were taken from the plant, causing irreparable damage to the company.
GM says that the plant was taken in violation of his right to a fair trial. The company says it will defend itself legally and that it is confident that right will eventually prevail.
GM has about 2,700 employees in the troubled country, where it has been the market leader for more than 35 years. It also has 79 dealers who make use of 3,900 people, and the parts suppliers, more than half of Venezuela ‘ s auto-parts market, the company said.
If the government allows it, employees will be given separation benefits arising out of the termination of the employment relationship due to causes beyond the parties’ control, ” the GM statement said.
Dealers will continue to be vehicles and parts, the company said.
Companies cut in Venezuela as a result of a runaway inflation and strict currency controls. Last May, tire maker Bridgestone and sold his company after a six-decades long active in the country.
Bridgestone together with other foreign multinationals, such as Halliburton, Ford Motor and Procter & Gamble that is either delayed or stopped their investments in Venezuela.
Shares of General Motors Co. rose slightly in premarket trade.