Caracas: US automaker, Ford has halted operations in Venezuela due to a lack of foreign currency to import parts for assembly, workers at its plant stated.Like other private businesses in Venezuela, carmakers have been complaining that the socialist government's currency controls are preventing them from importing essential products due to restrictions and delays in purchases of dollars. Haiman El Troudi, Transport Minister confirmed the stoppage at the plant but said it should reopen in two weeks after a meeting between Ford representatives and government officials that resolved some "critical bottlenecks."
The minister said state currency board Cencoez would release $20 million in debt to Ford. Toyota Motor Corp halted vehicle assembly in Venezuela in February for the same reasons. Venezuela's struggling auto industry saw first-quarter production fall 76 per cent to just 3,424 vehicles, compared with 14,316 units in the same period of 2013, according to national automakers' organization Cavenez.
Ford assembled only 499 cars in the first three months of 2014. Automobiles are just one sector of many where President Nicolas Maduro's government is facing clamor to release more dollars for imports. He says unscrupulous businessmen exaggerate needs in order to flip dollars on the black market for profit. But nevertheless ministers are holding urgent meetings with business heads to try and resolve problems and help reverse the slide in local production.
Venezuela operates three exchange controls - at 6.3 bolivars per dollar for preferential goods, and at around 11 and 50 for other sectors via two Central Bank mechanisms.
