DETROIT, U.S. - Blaming the Venezuelan government authorities for making an illegal judicial seizure of its assets in the country, Detroit automaker General Motors stopped doing business in Venezuela.
On Wednesday, authorities confiscated the company’s plant after anti-government protesters clashed with authorities, protesting the growing economic and political crisis in the country.
In an official statement, the automaker said that other assets such as vehicles were taken from the plant, causing irreparable damage to the company.
GM further noted that the plant was taken in disregard of its right to due process.
The automaker further added that it will defend itself legally and that it’s confident that justice eventually will prevail.
GM, that has been leading the auto market in the country for over 35 years now, currently hires about 2,700 workers there.
The company also said it has 79 dealers that employ 3,900 people, and its parts suppliers make up more than half of Venezuela’s auto parts market.
The GM statement added that if the government permits it, workers will get separation benefits “arising from the termination of employment relationships due to causes beyond the parties’ control.”
Adding, dealers will continue to service vehicles and provide parts.
South American operations, which include Venezuela, account for a relatively small portion of GM’s earnings and sales.
As a result of the spiralling inflation and strict currency controls, many companies have scaled back operations in Venezuela.
Automakers, including GM, Ford and Fiat Chrysler Automobiles have struggled to generate revenue in Venezuela in recent years.