Car sales fall 83% in Venezuela due to forex problems
Sunday, July 13 2014 @ 11:00 AM AST
Contributed by: elijose
Photo by romano.perelli, Flickr
Canidra, a national car parts chamber of commerce said Friday that Venezuela is facing "a crisis without precent" in the automotive sector after an 83% fall in car sales due to problems with buying foreign exchange, Diario Libre reported.
Car assembly plants in the South American country have sold no more than 6,200 vehicles in the first quarter of the year which is an 83 per cent fall versus the same period last year.
Some car assembly plants have reportedly reportedly stopped all assemblage and others have slowed down. Canidra said it is no longer the parts business that is in crisis but the entire automotive sector, adding that it is the worst it has been in 50 years.
In its latest (June) report, the Automotive Chamber, Cavenez, said vehicle production plummeted in the first half (H1) of the year with a steep fall compared to last year, from 6,161 vehicles assembled in H1 2014 versus 36,919 in 2013. In June 2013, 5766 vehicles were assembled compared to 928 in June 2014.
Three of the seven plants in Venezuela have reportedly shut down, Chrysler, Iveco and Mack, while Toyota assembled 100 vehicles in June after three months of no production.
In H1 2014, MMC Automotriz, which assembles Mitsubishi and Hyundai) led with a production of 2,097 vehicles, followed by GM with 1,694.
Iveco Venezuela, on the other end of the spectrum, produced an industry low of 39 vehicles.
The automotive industry in Venezuela was the pride of the continent, the chamber said.