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| Caribbean-Latin America |
| Toyota to temporarily halt production in Venezuela |
| 2014-02-11 |
| Toyota said on Friday it would soon halt production at its only assembly plant in Venezuela because the world's largest automaker lacks hard currency to import parts due to government controls. The temporary shutdown of the Japanese car maker's operations in the western city of Cumana is due to begin February 13 and last at least six weeks. Venezuela's President Nicolas Maduro says he wants to speak to Toyota's top official for Latin America after the carmaker said it would stop production in the South American nation. "I have already directed Industry Minister (Wilmer Barrientos) to call in the head of Toyota for Latin America, or have somebody come from Japan," Maduro said in an address on state television. The plant produced nearly 9,500 vehicles in 2013. Last year, 72,000 vehicles were made in Venezuela, down more than 30 per cent from 2012. Companies such as Toyota must go through a complex bureaucratic process to obtain dollars. Venezuela is only providing dollars at the official rate of 6.3 bolivars to the dollar to importers of designated priority goods such as food and medical supplies. Others who need dollars to pay overseas bills have to buy them at a higher rate at government-run auctions. Many companies have complained Caracas is not providing them with enough hard currency. The currency controls have led to shortages of a wide range of basic necessities, and fuelled an inflation rate that reached 56.2 per cent last year. |
| Posted by:Pappy |
| #8 JQC it's impossible. Dollars are needed to import parts to assemble the cars, the rate you see today might not be the rate you see tomorrow. And the government is allowed to decided which rate you get. Massive losses can be incurred if you are not incubated from the terror of the Cadivi. |
| Posted by: Shipman 2014-02-11 18:34 |
| #7 I'm thinking they are in fact skipping Venezuela. Toyota has the cash reserves to do what they want. It looks like it is just getting too difficult to manufacture there. How does a company ease out of this pain-in-the butt-country but still sell cars there?(Rhetorical question). |
| Posted by: JohnQC 2014-02-11 16:21 |
| #6 Far be it from me to tell Toyota how to do business but Venezuela? Really? Even if I had a plant in every Latin American country I'd probably skip Venezuela. |
| Posted by: rjschwarz 2014-02-11 14:53 |
| #5 If I was the head of Toyota for Latin America I would not answer the call from Wilmer Barrientos. I'd by a ticket for the next plane outta there. |
| Posted by: Ebbang Uluque6305 2014-02-11 14:33 |
| #4 Not my concern. I'm happy as long as this one and others like it are running. All |
| Posted by: Besoeker 2014-02-11 08:13 |
| #3 A story appeared on Feb. 5th, 2014 stating: Toyota also upped its forecast for the end of fiscal year 2013 (which ends on March 31 for Japan), to a record 1.9-trillion yen (about $18.8 billion). Now, the Japanese brand is reportedly sitting on a cash pile of nearly $40 billion, leaving Toyoda-san in an envious predicament – what should the company do with all that money? Toyota has cash reserves it appears it is a hassle to get any of them into Venezuela without their government applying the "Chicago Way" to fund coming in. Story here |
| Posted by: JohnQC 2014-02-11 08:00 |
| #2 Next: nationalize the assembly line. (The parts still have to come from China and Korea, so that'll work for about 3 days.) |
| Posted by: ed in texas 2014-02-11 07:41 |
| #1 And how long is "temporary"? My guess is till after Madcow croaks it. |
| Posted by: AlanC 2014-02-11 07:36 |