General Motors has announced the leftist-led Venezuelan authorities have illegally seized its manufacturing plant and industrial hub in Valencia, reports Reuters.
The country of Venezuela, which remains in a deep economic crisis, did not respond to a request for comment on the situation when forwarded to the information ministry.
“Yesterday, GMV’s (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations. In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities,” the company said in a statement.
GM vowed to “take all legal actions” to defend its rights after the seizing halted operations in the country. GM estimates irreversible damage to take place and fears the worst for its 2,678 workers, 79 dealers and local suppliers.
The Venezuelan government isn’t a stranger to temporary taking things over. In 2014, the government seized two plants belonging to U.S. cleaning products maker Clorox Co which had left the country.
Many plants in the country are barely producing much of anything at all, thanks to dwindling raw materials and currency controls. In 2015, Ford wrote off its entire investment in the country by taking an $800 million pre-tax write-down.