Mexican Media Brands
Toyota Using Exports to Keep Venezuelan Unit Afloat
Toyota Motor Corp.’s Venezuelan unit is exporting replacement car parts to generate the cash it needs to build new vehicles.
#economics
Share
Toyota Motor Corp.’s Venezuelan unit is exporting replacement car parts to generate the cash it needs to build new vehicles.
Steve St. Angelo, CEO for Latin America, tells Reuters the unit is collecting about $2 million per year by shipping repair parts made by its assembly plant in Cumana to other markets in South America. He says the cash can then be used to buy components it needs to “keep the place running.”
Toyota’s facility assembles Corolla sedans, Fortuner SUVs, Hilux pickup trucks and Daihatsu brand Terios mini-SUVs, according to the company’s Web site.
Like other foreign manufacturers in Venezuela, Toyota is struggling with a national currency control system that makes it difficult to access foreign currency needed to buy import parts. Some U.S. suppliers have suspended operations in the country because of the policy.
St. Angelo tells Reuters that Toyota aims to expand its Venezuelan exports from four types of parts currently to 26 by the end of 2016—and perhaps begin shipments to Cuba. “You have to help yourself,” he adds, “and that’s what we’re doing.”
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.