GM halts operations in Venezuela after factory seized

GM halts operations in Venezuela after factory seized

GM halts operations in Venezuela after factory seized

The GM logo is seen in Warren, Michigan, U.S. on October 26, 2015.

General Motors announced it will shut down operations in Venezuela after authorities unexpectedly seized the plant on Thursday, CNN reports.

The leftist-led Venezuela is facing deepening economic crisis, and the country has already roiled many US companies.

A court in the Zulia state said it imposed a broad embargo on the assets of General Motors Venezolana, C.A., or GMV, which has been in operation for almost seven decades. GM says it vows to "take all legal actions to defend its rights". It also has 79 dealers that employ 3,900 people, and its parts suppliers make up more than half of Venezuela's auto parts market, the company said. In 2014, USA cleaning product company Clorox had to abandon its Venezuelan operations after country officials "temporarily" took over two of its local plants. A growing number are taking their Venezuelan operations out off their consolidated accounts.

In the past, Venezuela's government has taken over factories.

Venezuela faces around 20 arbitration cases over nationalizations under late leader Hugo Chavez.

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