Donald Trump couldn't have said it better (or differently).
GM’s Venezuelan subsidiary is no more, according to Reuters. In a text message sent to almost 2,700 employees, GM has informed them of their firing and that severance pay is already in their bank accounts. A few days ago, GM found itself in a bind regarding its production facility in Venezuela, a country that’s currently experiencing economic turmoil. Venezuelan authorities seized the facility, located in the industrial hub of Valencia, following a Venezuelan court ordering the action.
It had previously ruled in favor of two dealers who claimed GM had not complied with an earlier sales agreement. However, workers are saying that even before the seizure, GM had begun to dismantle the plant, which hasn’t produced a single car since the beginning of 2016. GM, however, claims the seizure is illegal and immediately ended all operations until it could make a final decision on how to proceed. Apparently that decision has just been made. GM executives have already left the South American country, despite a plea from the government to the president of GM Venezuela to "show your face and share with us the options to restore normality."
The production plant had been in operation for 35 years. GM isn’t the first major automaker to bail out of Venezuela recently. Ford previously wrote off its investment there following an $800 million pre-tax writedown. Going forward, there could very likely be additional global companies, aside from automakers, that end up leaving Venezuela because of the local economic and political climate.