Ford expects 'significant' second-quarter loss in South America

Wed Jun 4, 2014 7:11pm EDT

An old Ford Falcon drives by the entrance of the parking lot of the Ford factory in Pacheco, on the outskirts of Buenos Aires, May 22, 2014.  REUTERS/Marcos Brindicci

An old Ford Falcon drives by the entrance of the parking lot of the Ford factory in Pacheco, on the outskirts of Buenos Aires, May 22, 2014.

Credit: Reuters/Marcos Brindicci

Related Topics

(Reuters) - Ford Motor Co (F.N) said it expected to incur a "significant" loss in South America in the current quarter mainly due to low sales volumes and changes to Venezuela's foreign exchange rate.

The company is also expected to report a bigger loss in South America in 2014, Joe Hinrichs, executive vice-president, said on Wednesday.

The No. 2 U.S. automaker's loss in South America deteriorated to $510 million in the first quarter ended March 31, from $218 million last year due to the currency devaluation in Venezuela and Argentina.

The Venezuelan government in March opened a new currency platform meant to boost access to dollars.

Ford's operations in Venezuela were disrupted last month due to a lack of foreign currency to import parts for assembly.

(Reporting by Rohit T. K. in Bangalore; Editing by Maju Samuel)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.