Venezuela: Toyota begins to export parts to try to overcome the crisis

Toyota Venezuela began to export parts built with 100% local materials. The first export had Argentina as a destination, but expect to be able to reach out to more Latin American markets.

Terios-AWD-venezuelaEl venezuelan market takes months of collapse due to the economic crisis and the difficulties of the terminals to achieve access to the foreign currencies that allow you to be able to import the parts necessary to manufacture its products locally. Venezuela was in its time the third largest automotive industry in South America, but now the sales have fallen so low, that during the past month of September alone we have sold a total of 591 units.

Both Toyota’s other assembly plants of automobile of Venezuela have had to reduce production due to the lack of components. In this context, Toyota Venezuela began to export parts produced locally, to achieve to counteract the unfavorable situation. This will allow you to to generate income in foreign currency to help support the local crises and attempt to recover their productive capacity.

, Argentina already receives the parts produced in Venezuela made with local materials. This maneuver will allow venezuelans access to foreign currency.

The director general of Toyota for Latin America and the Caribbean Steve St. Angelo said in this sense that the key lies in trying to find alternative solutions, which, preferably, does not depend on the government to implement them. Toyota began to export four types of parts to Argentina, which are made with materials 100% venezuelan, but expect to be able to expand the parts gradually until you reach a total of 26, including to other regions of Latin America.

With this decision, Toyota Venezuela will be a few 2 million dollars per year, which will allow them to be able to purchase parts from the outside for the same amount of money and thus be able to keep your plant in production. With this maneuver Toyota is excited in addition to able to become the first company in the region to export to Cuba.

however, not everything is joy, and that the complex currency controls in force in Venezuela, stipulate that 40% of the income in foreign currency generated through exports must be sold to the central bank of venezuela, which transforms them into bolivars using a fixed rate of around 50 bolivars, a figure very, but very far from the 900 bolivars per dollar, that are paid in the informal market.

the producers of The cars because they don’t know which solution to turn face and these barriers, which forces them to resort to alternative solutions. However most have been forced to suspend production.