Owing to inadequate foreign currency required to import parts, Ford has stopped assembly operations in Venezuela, plant workers told the Reuters news agency.
Carmakers and other businesses in the country are affected by currency controls imposed by the socialist government which hinders imports owing to delays in dollar purchases.
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Transport minister Haiman El Troudi confirmed the Ford production halt but said the plant would reopen in two weeks. A meeting scheduled between government officials and Ford representatives should resolve certain ‘critical bottlenecks’.
Other carmakers in the country are also facing similar problems. In February, Toyota stopped vehicle assembly for the same reason.
From January to March, Ford built only 499 cars in Venezuela.
The automaker last month reported a first quarter pre-tax loss of US$510m in South America, up $292m on Q1 2013’s loss, due to currency effects, higher costs due to high local inflation and lower volume due to a weaker industry.
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By GlobalDataWholesale volume and revenue decreased by 8% and 18%.
Ford now expects South America to incur a larger loss than in 2013 ranging from break even to a small loss.
