After nearly 70 years, General Motors is no longer operating in Venezuela.
Venezuelan authorities unexpectedly seized a GM plant yesterday earlier this week, a trend that has been common over the past few years as the country is in political unrest.
The GM plant stopped making cars in 2015 due to poor economic conditions in the country, but had been making auto parts instead.
GM released a statement that says, “[General Motors Venezuela’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.”
According to the statement, over 2,670 employees will be laid off with the closure of this plant.
Rebecca Lindland, an executive analyst with Kelley Blue Book, says this seizure comes during a time of heavy protests in Venezeula.
“The main concern about this situation is simply that everyone at General Motors is safe and stays safe,” she said.
According to Lindland, the unstable political climate has caused issues for companies other than just GM.
“What’s happening with GM today is just indicative of the instability in the industry itself in Venezuela,” she said.
GM will be taking legal action, but it is unclear what action that will be, according to the statement.
