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Venezuelan car markets, part 2

February 13, 2014

My last post about Venezuela concerned how the statists running the country were planning to micro-manage the used car market.

Here’s an article in USA Today about what they’ve done to the new car market (via Carpe Diem).

Venezuela car industry slips into idle

CARACAS, Venezuela — Leonardo Hernandez had hoped to buy a new car this year, ending nearly two years of waiting on various lists at different dealerships throughout the country.

Those hopes were dashed last week when Toyota Motor Co. said it would shut down its assembly operations in Venezuela due to the government’s foreign exchange controls that have crippled imports and made it impossible to bring in parts needed to build its vehicles.

The country’s other car manufacturers, including General Motors and Ford, haven’t even started operations this year, while waiting for needed parts to arrive.

“I desperately need a new car for work,” said Hernandez, who works as a salesman. “I have been waiting and waiting, and now this. I have no idea what I am going to do. And I can’t even find spare parts for the old car I have.”

Toyota joins a long list of companies saying they are having to curtail or stop operations in the South American country thanks to the government’s foreign exchange regime, which the late President Hugo Chavez created in 2003 to fight capital outflow.

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