The Government of Venezuela expropriates General Motors to its factory in Valencia

General Motors Venezuela

automotive sector in Venezuela takes several years in the doldrums. The situation that the country lives, with the rockfill in the power of Nicolas Maduro, is unbearable. The economy of one of the richest countries in the world (in raw materials) is sunk, and its recovery does not seem visible in the short term. Especially when are choking the multinationals with higher taxes, impossibility of access to foreign currency and in the end, they expropriate their productive facilities.

General Motors is the company aggrieved by the government of Venezuela on this occasion. Apparently, a dealer in the capital, Caracas, reported 17 years ago because the american group withdrew the license of the licensee by an “inefficient performance”. This judicial process has been open more than a decade and it seems that has been resolved in favor of the complainant as General Motors has seen how it lost its factory in Valencia.

General Motors Venezuela

The conglomerate american began its industrial activity in Venezuela in the year 1948 and during these years his activity has been stable. The situation now General Motors is similar to that of other foreign companies have lived. On the basis of the court decision, which points to the american multinational as the culprit, the venezuelan government has expropriated his factory. In addition, this has not been the only facility that has fallen into the hands of the government, because also it would have been with a dealership for Chevrolet located in the city of Maracaibo.

The plant of Valencia (located about 150 kilometers from Caracas) has a production capacity of 45 thousand units per year, which employs some 2,700 workers. After its closure by the government of the country they have lost their jobs and have been left in the street. In addition, not only affects the workers, but the 79 dealers of General Motors in the country will have to close its doors in a short period of time.

In view of the situation, and the 95 million dollars that is requested to General Motors in respect of legal costs, the multinational has decided to leave the country. Cancel its operations has been most easy, because the situation in the country is very delicate, and at any moment this situation could occur. The only activity that will keep by General Motors in the country is the post-sales service and the sale of spare parts and parts for their vehicles.

Source – General Motors