General Motors’ factory in Ecuador has ceased operations due to pressure from local competitors, according to Reuters.

Its plant in Quito, which was established in 1975, accounted for half of car production/assembly in the country.

It has said it will also stop production operations in neighbouring Colombia.

GM aims to continue to sell vehicles in Ecuador.

Operations in Colmbia and Ecuador will transition "to a national merchandising model to support the launch of next-generation vehicles," the company said.

There are 320 workers at the Quito plant that are fearful for their livelihoods, reports Reuters.

It is thought that a decline in car purchases, high interest rates, and inflation are factors contribution to the move to close assembly operations.