The fallen socialist utopia of Venezuela is continuing on into what can only be described as a complete and total economic death-spiral, with no improvement or relief for the nation’s struggling population in sight.
Marking just how severe this economic crisis has become, the government of Venezuela has apparently run of citizens to shake down and has reportedly moved on to American automotive manufacturer General Motors.
Seizing GM’s Venezuela automotive manufacturing plant in a move the General Motors is calling nothing short of an ‘illegal judicial seizure of its assets,’ the struggling government has now placed itself at odds with the same automaker which has dominated the nation’s market as a leader for over 35 years.
GM which employees approximately 2,700 at its Venezuela plant and another 3,900 in its 79 automotive dealers has now been forced to completely halt its business with the economically destitute country.
While GM states that they wish to pay workers separation benefits upon their withdrawal if allowed by the Venezuelan government, GM’s departure from the country marks a massive loss for both its workers and consumers as the automaker currently provides over half of the nations auto parts.
GM additionally states that coming “termination of employment relationships” are “due to causes beyond the parties’ control.”
Going further to state that dealerships will still be able to service vehicles and provide parts, the cost of these services will undoubtedly sky-rocket given the magnitude of the plant seizure.
The plant was confiscated on Wednesday as anti-government protesters clashed with authorities in a country that is roiling in economic troubles such as food shortages and triple-digit inflation.
GM says the plant was taken in disregard of its right to due process. The company says it will defend itself legally and that it’s confident that justice eventually will prevail.
Companies have been cutting operations in Venezuela as a result of runaway inflation and strict currency controls. Last May, tire maker Bridgestone sold its business there after six decades of operating in the country.
Bridgestone joined other foreign multinationals including Halliburton, Ford Motor and Procter & Gamble who have either slowed or abandoned their investments in Venezuela.