Carmakers Poised to Resume Production in Venezuela

Fiat Chrysler Automobiles, General Motors and Toyota are ready to resume production in Venezuela over the next two months after the government agreed to let them sell their vehicles in U.S. dollars, Bloomberg News says, citing unnamed sources.

The companies had halted production months ago after their access to dollars, used to buy imported components, dried up. Venezuela’s auto association says only about 1,200 vehicles were assembled in the country from January to May, most of them by Ford Motor Co.

Bloomberg reports the agreements with FCA, GM and Toyota will be similar to the deal Ford worked out last year. It enables consumers to pay for the imported content of a new car in dollars and use bolivars to cover the cost of local assembly.

Other carmakers in the country who may reach similar arrangements are Chery Automobile, IVECO, Mack Trucks and Mitsubishi Motors.