General Motors on Wednesday said that that Venezuelan authorities had illegally seized its plant in the industrial hub of Valencia and vowed to take all legal actions to defend its rights, Reuters reported.
The company noted that the seizure would cause irreparable damage to the company, its 2,678 workers, its 79 dealers and to its suppliers.
The company reportedly said in a statement, "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."
Reuters reported that Venezuela's Information Ministry did not immediately respond to a request for information.
The leftist-led Venezuela is facing deepening economic crisis, and the country has already roiled many U.S. companies.
Venezuela's car industry has been in turmoil, amid a lack of raw materials due to complex currency controls and stagnant local production, and many plants are barely producing at all.
Ford Motor Co. in 2015 wrote off its investment in Venezuela with an $800 million pre-tax writedown.
In the past, Venezuela's government has taken over factories. In 2014, the government announced the temporary takeover of two plants of U.S. cleaning products maker Clorox Co which had left the country.
The country faces around 20 arbitration cases over nationalizations under late leader Hugo Chavez.
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