The Venezuelan authorities seized the GM-plant in Valencia, including produced vehicles ready to be sold. The GM company has 79 dealers and suppliers and represents a work force of about 2.700 employees.
Normal operations are prevented by the authorities until GM and the Venezuelan government in Caracas reach a mutual understanding over how the case shall be settled.
In early 2015, Ford Motor Company wrote off its investment in Venezuela, because US sanctions helped the car industry to plummet in a free fall, hit by a lack of raw materials and IMF sanctions over complexed currency controls that helped cause stagnant production, leading to many plants to barely produce at all.
The country’s economic crisis has also hurt many other US companies in Venezuela, especially food makers and pharmaceutical firms. A growing number foreign based companies their operations elsewhere to consolidate their accounts.
The Venezuelan government has taken over factories before in order to guarantee employment for its citizens. In 2014, the authorities announced the temporary take over of two industrial plants belonging to Clorox, which had left the country.
Reuters / AA Magnum News 2017.