Ford Expects Another Big Loss in South America

Ford Motor Co., which lost $510 million in South American in January-March, warns of another "significant" loss in the second quarter because of slumping sales, Reuters reports.

Joe Hinrichs, Ford's president of the Americas, blames the continuing downturn in part on currency devaluations in Argentina and Venezuela that have tightened access to U.S. dollars.

The company slashed production in Venezuela 75% in the fourth quarter of last year and halted output entirely in May because it couldn't get enough parts. Ford says sales have dropped dramatically because of the country's high inflation rate.