Venezuela authorities seize GM plant

General Motors has immediately ceased its operations in Venezuela after a judicial seizure of its assets on Wednesday. Local authorities took control of the plant, which was established in 1948, and seized company assets, including vehicles, the car maker said in a statement. The seizure, dubbed illegal by General Motors, follows a week of heavy protests in Venezuela. Falling oil prices, the country’s main export and backbone of its economy, has brought in a heavy and ongoing economic recession. According to General Motors, their Venezuelan division employs 2,678 factory operators and oversees 79 dealers, with a service network of over 3,900 further workers. General Motors will ensure that separation benefits to employees will be paid “as far as the authorities permit”, and plans to undertake further legal action within and outside of Venezuela. Dealers will continue to provide aftermarket services and parts for local customers. The car industry in Venezuela has recently plummeted, following a lack of raw materials due to stagnant local production and widespread economic depression, and Reuters says many plants are barely producing at all. Ford has already abandoned its interest in Venezuela. In 2015, the car maker wrote off all investments and undertook an $800 million pre-tax writedown.