Auto

General Motors Officially Leaves Venezuela As It Sees Decline In April Sales

By Shor M. Rae , May 03, 2017 05:20 AM EDT
Close

The April sales for automobiles this year has just been released. Unfortunately, it sees a decline in sales affecting General Motors and other well-known automaker companies. Along with that, General Motors has officially left Venezuela.

General Motors Sales Decline In April 2017

The figures are out for the month of April and things are not looking that good for automakers. General Motors, along with Ford, Nissan, and Toyota have all reported that have suffered a decline in their sales. These are strong indications that the demand for cars is gradually slowing down.

General Motors suffered a 5.8 percent decline in their sale last April, which is smaller compared to the other companies. Despite the huge profits from making the Cruze compact car a hit and selling SUVs, it was not enough to offset the difference. Analysts say that even with the decline in the demand for cars, the sales are still healthy. Countless automaker companies have offered various deals because of the tight competition in the automobile market.

General Motors Ceased Operations In Venezuela

General Motors has announced that they are finally leaving Venezuela. The announcement took place after the Venezuelan government allegedly seized the automaker’s assembly plant in April, explaining that it was under embargo because of a lawsuit that was filed in 2000. The company has stopped operations in the said plant even though not one single car was fully produced in it for more than a year already.

The plant had over 2,500 employees and they will be compensated with severance pays after the government action is resolved. Analysts said that closing down the plant in Venezuela was a good move because it was not producing any revenue. With the recent decline in automobile sales, General Motors would be able to reassess their situation. The operations in Venezuela reportedly cost GM about $100 million.

© 2019 ITECHPOST, All rights reserved. Do not reproduce without permission.
Real Time Analytics