It might not be by choice, but General Motors no longer has a presence in the Venezuelan market.
The government of Venezuela took over a GM plant Wednesday in a move the American automaker called an “illegal judicial seizure of its assets,” USA TODAY reports.
General Motors Venezuela (GMV), which employs 2,700 people and runs a network of 79 dealers, reportedly said it will compensate workers affected by the facility’s closure.
“The company is confident that justice will eventually be served, and looks forward to continue leading the Venezuelan market,” GMV said in a statement. “In the meantime, GMV, through its dealers, will continue to provide aftermarket service and parts for its customers.”
GM plans take legal action in response to the seizure, though Peter Quinter of GrayRobinson’s Customs and International Trade Law Group claims its options are few.
“They can go to the courts here in the United States and try to seek action,” Quinter said, via USA TODAY. “But that really is not going to be effective unless the Venezuelan government has some assets here.”
The South American country’s struggling economy reportedly has hindered the industry’s growth in recent years, which could’ve contributed to the value of GM’s stock increasing by 0.6 percent in early trading Thursday.
Thumbnail photo via General Motors