Currency shortfall: Venezuela auto industry in crisis

Vehicle assembly plants are facing their worst year in the oil-rich OPEC nation, producing five times fewer vehicles than last year. PHOTO: FILE

CARACAS: 

Venezuelans are struggling to buy cars as production falters thanks to a lack of foreign currency to pay for imported parts.

Vehicle assembly plants are facing their worst year in the oil-rich OPEC nation, producing five times fewer vehicles than last year due to the lack of imported supplies amid an economic crisis that began last year.

Economic experts blame the South American country’s problems on a decade of rigid currency and price controls, as well as rising debt, dependence on imports and stagnant economic growth. Venezuela is only providing US currency at the official rate of 6.3 bolivars to the dollar to importers.