Venezuelan Authorities Have Illegaly Seized General Motors’ Plant

General Motors announced on Wednesday that Venezuelan authorities had illegally seized the company’s plant in the industrial hub of Valencia. The company said that it vows to “take all legal actions” to defend its rights.

In a statement, General Motors said, “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.”

According to the auto manufacturer, the illegal seizure will cause irreparable damage to the company, its 2,678 workers, its 79 dealers and to its suppliers. The company will be laying off nearly 2,700 workers.

General Motors’ Venezuelan division said that it was ceasing operations in its plant located on the central coast in the state of Carabobo, after it was “unexpectedly taken by the public authorities, preventing normal operations.”

GM said that the government had taken other assets of the company, including vehicles, from the plant.

A G.M. spokeswoman, Dayna Hart stated, “G.M. strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions to defend its rights.”

Five years ago, automakers made more than 100,000 cars and trucks in Venezuela, according to the research firm Wards Auto. Last year, automakers made only 4,900 vehicles.

Disclaimer: We have no position in General Motors Company (NYSE: GM) and have not been compensated for this article.