As political tension rises in Venezuela the government have now taken control of General motors one and only factory in the country along with assets belonging to the Detroit company after the Zulia court imposed a broad embargo on General Motors Venezuelan which has 2500 workers and has been in business for over 35 years.
General motors have said that the seizure by the Venezuelan government is “improper, absurd, outside of legal logic and due process.” and is ceasing all business in Venezuela in response. GM also added that they would “vigorously take all legal actions, within and outside of Venezuela, to defend its rights.” ”
This is not the first time that the government has taken control of a factory of a multinational company operating in the country. Back in July 2016 the government took control of another major American brand Kimberly-Clark Corp aswell as Clorox back in 2014, both of these brands also had to pull out of the country.
On wednesday the U.S. Secretary of State Rex Tillerson said that:
“We are concerned that the government of Maduro is violating its own constitution and is not allowing the opposition to have their voices heard, nor allowing them to organize in a way that expresses the views of the Venezuelan people,”
This seizure of American capitalist property by the Venezuela government will further rupture relations with the U.S. (the US have gone to war with countries for less and our country is particularly vulnerable to a us invasion due to the amount of oil that Venezuela poses)
The general motor seizure comes after riots and protests from opposition support against the Venezuelan government who are currently struggling to remain in control of the country.
-The one positive that can be gleaned through this seizure is that the Venezuelan government despite its failings will at least will not sell out to American cooperate brands no matter how tempting that prospect maybe.