After The Illegal Seizure Of Its Plant, General Motors Is Forced To Cease Operations In Venezuela By: General Motors
• The company announces immediate cessation of operations in Venezuela
• GMV will pay separation benefits to the workers according to Venezuelan law.
Established in 1948, General Motors Venezolana (GMV), the oldest and most traditional automaker in the country, and market leader for more than 35 consecutive years, is forced to cease operations in Venezuela due to an illegal judicial seizure of its assets.
Yesterday, GMV's plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities.
The seizure was granted and enforced in total disregard of GMV's right to due process, causing irreparable damage to the company, its 2,678 workers, its 79 dealers (the country's largest service network with more than 3,900 workers), and to its suppliers (representing more than 55% of the auto parts industry in Venezuela).
As a consequence, GMV announces the immediate cessation of its operations in the country, and ensures (as far as the authorities permit) payment of the employees' separation benefits arising from the termination of the employment relationships due to causes beyond the parties' control.
GMV strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions, within and outside of Venezuela, to defend its rights.
The company is confident that justice will eventually be served, and looks forward to continue leading the Venezuelan market. In the meantime, GMV, through its dealers, will continue to provide aftermarket service and parts for its customers.
General Motors Co.
(NYSE: GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.