Ford Venezuela unit to sell cars in dollars only - sources
By Eyanir Chinea
CARACAS May 8 (Reuters) - The Venezuela division of Ford Motor Co will begin selling vehicles only in dollars in the coming months, two sources familiar with the situation said on Friday, as currency controls leave the automaker unable to recover revenue from local sales.
A lack of parts for assembly in April led Ford de Venezuela to halt operations as it was unable to obtain dollars for import through the exchange control system. The controls have also left Ford unable to turn the local bolivar currency into greenbacks.
"We will begin sales in hard currency toward the end of June; things are very advanced," said a source linked to the Venezuelan network of Ford retailers, who is unauthorized to speak publicly about the issue and requested anonymity.
"It has been very secretive. The government has asked that Ford be very discrete about this."
The source said retailers had put in their own dollars to import parts from Ford headquarters, which "deconsolidated" Venezuela operations because it could neither ensure supplies of parts nor repatriate dividends.
The agreement also requires that Ford be allowed to export part of its output to other Latin American countries to ensure further supplies of hard currency, the source added.
Ford de Venezuela did not immediately respond to a request for comment. The Communication Ministry did not answer an email seeking comment.
The measure is unlikely to be well-received by Venezuelan consumers, who have limited access to dollars. Cars are already difficult to obtain due to the production problems. Continuación...