We have a tad more context surrounding the Venezuela and the state authorities’ decision to seize General Motors’ manufacturing plant, a move the automaker called “illegal.”
According to The New York Times, it wasn’t Venezuelan authorities who first took control of the plant, instead, union members have supposedly been in control of the facility for some time — 42 days, to be exact.
The plant’s takeover is reportedly due to an unsettled lawsuit between an angry dealer group and GM itself over torn up contracts. In turn, the dealer group demanded billions of dollars in compensation. GM responded by saying the figure “exceeds all logic.” So, the union took control of the plant.
Following GM’s official decision to appeal the government to return the factory back into its hands, government authorities took the plant for itself instead. The report states company managers are no longer allowed inside the facility, but union members are.
General Motors hasn’t produced a vehicle at the Valencia-based industrial hub since 2015 as resources have continued to dwindle in the country. The automaker’s legal options are slim, too.
Though, GM has vowed it will take a legal necessary action to defend its rights in the country.