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December 21, 2016

Ford to halt Venezuela production until April

Ford has suspended its assembly operations in Venezuela and said it is not planning to resume production until April of next year.

Ford has suspended its assembly operations in Venezuela and said it is not planning to resume production until April of next year.

The decision is a blow to the efforts of the country's government to shore up confidence and stabilise an economy in crisis.

"It is a measure to adjust production to demand in the country," Lyle Watters, Ford's president for South America, told Reuters.

Reuters reported that Watters added the production freeze would not affect Ford's consolidated results as operations in Venezuela are reported separately.

The Reuters report also noted that Ford is the only automaker still mass producing cars in Venezuela.

National trade association Cavenez has produced data that shows Ford produced 2,253 units out of a national total of 2,768 in the year through November.

Venezuela's economy has been hit by a 'demonitisation' policy that has seen the 100-bolívar note suddenly withdrawn as legal tender earlier this month. It is the most valuable note in circulation, accounting for 77% of the nation's cash.

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