Pirelli says it is indefinitely suspending the production of tyres in crisis-hit Venezuela due to problems securing supplies of raw materials.
Venezuela is being hit by a severe economic crisis and Pirelli is the latest major international corporation to suspend manufacturing operations there. GM recently said it was closing down operation
Pirelli is the latest foreign company to suspend its operations in Venezuela amidst a severe economic crisis. GM recently said it was leaving the country due to the scale of the political and economic crisis.
Pirelli has said it will cease production at its Guacara plant after 26 years in business in Venezuela.
However, Pirelli also said it would do everything possible to continue supplying the country with tyres.
Oil-rich Venezuela has been hit by mismanagement of its economy that has included currency controls, runaway inflation and excessive government borrowing. The country's left-leaning government has also polarised opinions and raised fears of a move towards a Cuba-style regime that would nationalise foreign companies' operations.
See also: Venezuela seizes GM factory