As most already know, the automotive industry in Venezuela has been steadily diminishing. Many plants are barely producing, as the area has been hit by a extreme shortage of raw materials and many companies from the States have struggled to access U.S. dollars for importation of parts.

The country’s crisis (which is blamed on the U.S.) has already severely impacted many U.S. companies, some being “temporarily” taken over, most notably Clorox and our fellow friendly competitor, Ford. A couple years back, Ford completely wrote off its investment ties to Venezuela after taking a whopping 800 million dollar pre-tax write down. And they weren’t the only ones.

Yesterday the news we all feared erupted; General Motors announced that they were also hit by the Venezuelan authorities – with its plant being illegally seized. “Yesterday, GMV’s (General Motors Venezolana) plant was unexpectedly taken by the public authorities, preventing normal operations,” the company said in a statement. “In addition, other assets of the company, such as vehicles, have been illegally taken from its facilities.”

It is unclear as to why the plant was seized but, nonetheless, GM plans to “take all legal actions,” as this showed a “total disregard” of legal rights, described as an “illegal judicial seizure of assets.” Rightfully so, as they say this will cause major harm to the company, its 79 dealers, suppliers, and the 2,678 workers (whom will each receive separation payments from GM, as per the Venezuelan law).

The company has announced immediate cessation of Venezuelan operations, but will continue to serve the market’s customers, providing aftermarket support and service.