Toyota has announced plans to suspend vehicle production at its assembly plant in Cumana, Venezuela, for six weeks from February 13th due to a shortage of foreign currency.
The closure is scheduled to last at least six weeks and will affect white collar workers as well as production staff. The Japanese automaker hopes the Venezuelan government in the meantime will allow it access to foreign currency so it can import car parts and resume vehicle assembly.
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Venezuelan president Nicolas Maduro has responded to the Toyota announcement by calling for talks with highly-placed Toyota group executives, including the head of Latin American operations, in an attempt to avert the shut-down.
The Cumana plant produced close to 9,500 vehicles in 2013, while overall vehicle output in the country fell by over 30% to 72,000 units, according to local industry sources.
Total vehicle output is reported to have fallen further in January, to 296 units, and these were almost entirely comprised of Toyota vehicles.
Foreign exchange restrictions are causing severe shortages of a long list of goods in the country, which is fuelling rampant inflation – estimated at over 56% last year.
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By GlobalData
