W As the news portal N-TV reports, government agencies sealed off the factory at the end of April. The automaker's bank accounts are also said to have been frozen. Any payment transactions, including the payment of salaries, were therefore impossible.
GM initially announced that it would defend itself 'by all legal means'. The US company announced that the action would cause irreparable damage to GM, the 2,678 employees, the suppliers and the 79 dealers. The procedure is 'inadmissible, absurd, legally illogical and wrong'.
Now GM has decided to completely stop business operations in Venezuela. Closing business in Venezuela will cost the largest American automaker around 100 million dollars, the equivalent of around 92 million euros. GM is ready for talks with the government and unions and for a resumption of production, reports the Automobilwoche. GM hopes that the Venezuelan Supreme Court will declare the seizure illegal.
Venezuela is currently suffering from a severe economic crisis that has also hit several US companies, mainly due to constant supply chain bottlenecks. As N-TV further reports, GM competitor Ford already wrote off its investments in the country in early 2015. The socialist government has already taken over factories several times. Currently, 20 disputes between Venezuela and expropriated foreign companies are pending before international arbitration boards alone.