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The Government of Venezuela expropriated its Valencia factory to General Motors

General Motors Venezuela

Automotive in Venezuela it has spent several years in the doldrums. The situation experienced by the country, with the rockfill in the power of Nicolas Maduro, is unbearable. The economy of one of the wealthiest in the world (in raw materials) is sunk and their recovery isn’t visible in the short term. Especially when they are stifling the multinational corporations with high taxes, impossibility of access to foreign currency and ultimately expropriated them their production facilities.

General Motors is the company aggrieved by the Government of Venezuela on this occasion. Apparently, a dealer in the capital, Caracas, denounced it 17 years ago because the American Group evicted the dealer license for an “inefficient performance”. This judicial process has opened more than one decade and it seems that it has been resolved in favour of the complainant as General Motors has seen how lost its factory in Valencia.

General Motors Venezuela

The American conglomerate started industrial in Venezuela in 1948 and during these years activity has been stable. The situation in General Motors now is similar to that other foreign companies have lived. On the basis of the Court ruling, which points to the American multinational as the culprit, the Venezuelan Government has expropriated its factory. In addition, this has not been the only installation that has fallen into the hands of the Government, because they would have also been a dealer of Chevrolet located in the city of Maracaibo.

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

In view of the situation, and the 95 million dollars requested to General Motors in concept of legal costs, the multinational has decided to leave the country. Cancel operations has been the easiest, because the situation in the country is very delicate and this situation could occur at any time. The only activity that will be maintained by General Motors in the country of post Service sale and the sale of spare parts and parts for their vehicles.

Source – General Motors

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