General Motors Co poised to take legal action after Venezuelan car plant is illegally seized

General Motors Co. (NYSE:GM) revealed its General Motors Venezolana plant in Venezuela had been seized by the authorities amid intense protests against the South American country’s government.

In a statement the US car giant said the move was an “illegal judicial seizure of its assets”.

General Motors did not provide details about the seizure, reportedly saying only that vehicles and other assets had been taken from its facilities in Valencia – the country’s third largest city. It has vowed to take legal action.

It comes amid a worsening economic crisis in  Venezuela under socialist President Nicolas Maduro.

The country’s economy shrank by 18% last year the third consecutive year of recession and unemployment is now set to surpass 25%.

The country is no stranger to such antics. Large parts of its economy have been nationalized since former President Hugo Chavez rose to power in 1999.

Under him the state took control of private oil, telecommunications, energy and cement businesses.

In 2015, Ford Motor Co (NYSE:F.) wrote off its investment in Venezuela and took a $800 million pre-tax writedown.

A year earlier, Venezuela has announced what it called a “temporary” takeover of two plants belonging to US cleaning products maker Clorox which had left the country.

Story by ProactiveInvestors