GM halts operations in Venezuela after factory is seized

  • GM halts operations in Venezuela after factory is seized

GM halts operations in Venezuela after factory is seized

USA automaker General Motors (GM) has accused Venezuelan authorities of seizing its plant in the industrial hub of Valencia and pledged to "take all legal action".

GM vowed in a statement to "take all legal actions", saying the seizure is illegal and would cause irreparable damage to the company, its 2,678 workers, its 79 dealers and to its suppliers.

The US vehicle giant said it would "take all legal actions" to defend its interests.

Authorities in Venezuela, which is mired in a severe economic crisis, did not respond to requests for comment. Under Chavez, who took office in 1999, the state took control of private oil, telecommunications, energy and cement businesses.

"Government decision making is increasingly incoherent".

Watson said that automakers in the country have struggled because they've been unable to access USA dollars to import parts, said Watson. GM said that it would be paying separation benefits "as far as the authorities permit".

Venezuela's economy shrank by 18% last year - its third year of recession. Unemployment is set to surpass 25%, and its people have suffered from widespread shortages of food and medicine. The price of consumer goods has skyrocketed. It took spark after weeks of deadly street protests.

Ramirez was killed over the past day in the restive western border city of San Cristobal amid protests that also left two others dead - a teenage boy reportedly on his way to a soccer match with friends, and a National Guard officer whose unit was attacked.

Maduro, addressing supporters at a much smaller but still large countermarch of mostly state workers, said he was "anxious" to see elections take place sometime "soon" and repeated his call for dialogue, something many in the opposition see as a stalling tactic. The company announced that it was shuttering operations in the country after authorities seized the factory on Wednesday, April 19. Last July, the government said it would take over a factory belonging to Kimberly-Clark Corp. after the American personal care giant said it was no longer possible to manufacture because materials weren't available in Venezuela.

Venezuelan Interior Minister Nestor Reverol is blaming an opposition party for the killing of a 23-year-old woman amid ongoing protests in the South American country. Companies have been cutting operations in Venezuela as a result of runaway inflation and strict currency controls.

The government called the closure illegal.