According to workers at the Ford plant in Venezuela, the U.S. automaker has halted operations in Venezuela due to a lack of foreign currency to import parts for assembly.
Like many other private businesses in Venezuela, automakers have been complaining that the socialist government’s currency controls are preventing the carmakers from importing essential products because of restrictions and delays in purchases of dollars.
Workers at Ford said that the plant which is in the central city of Valencia would be closed until the end of May.
Haiman El Troudi, Transport Minister of Venezuela confirmed that there is a stoppage at the plant; however he said that the plant should reopen within two weeks after a meeting between government officials and Ford representatives that resolved some critical delay in progress.
The minister said that Cencoez, the state currency board would release $20 million in debt to Ford this week.
In February, Toyota Motor Corp had also halted vehicle assembly in Venezuela for the same reasons.
According to national automakers’ organization Cavenez, Venezuela’s struggling auto industry saw its first-quarter production fall 76 percent to just 3,424 vehicles as compared to 14,316 units in the same period of 2013. In the first three months of 2014, Ford assembled only 499 cars.
Automobiles are just one of the sectors of many where President Nicolas Maduro’s government is facing demand to release more dollars for imports. He says that corrupt businessmen exaggerate requirements in order to flip dollars on the black market for profit.
Nonetheless, ministers are holding urgent meetings with business heads to try and resolve problems and to help in reversing the slide in local production.
In Venezuela, Fiat Chrysler, General Motors and Mitsubishi also have assembly plants.