Venezuela's seizure of a General Motors auto plant has created concerns that assets in other sectors of the economy could be seized by authorities.
GM last week announced it would cease operations in the South American country after claiming a General Motors Venezolana (GMV) plant in the industrial hub of Valencia was illegally seized.
"The seizure was granted and enforced in total disregard of GMV's right to due process, causing irreparable damage to the company, its 2, 678 workers, its 79 dealers (the country's largest service network with more than 3, 900 workers), and to its suppliers, " the company said in a statement.
"GMV strongly rejects the arbitrary measures taken by the authorities and will vigorously take all legal actions, within and outside of Venezuela, to defend its rights. "
Yet GM may have to wait to achieve legal recourse. Venezuela has more than 20 pending cases at the World Bank's arbitration court, the International Centre for Settlement of Investment Disputes (ICSID).
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