Reuters logo
Ford expects 'significant' second-quarter loss in South America
June 4, 2014 / 10:03 PM / 3 years ago

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

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

(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

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below