Matrix XD

Matrix XD: Ford worry about Hugo Chavez Act

The end of 2009, Venezuelan President Hugo Chavez shook the automotive world by threatening to expel the largest car manufacturer in the world, Toyota if it does not do technology transfer. Not quite a month, now turn to Ford worried. What now?

The case against one of the largest automobile manufacturer in the United States is another. Not because there is a demand, but they will not be able to rake in more profits. In fact, oil-producing countries are "barn" money for Ford.

The reason, the number one in Venezuela, Chavez, to devaluation (increase) the value of Venezuela's currency by 50 percent from 2.15 to 4.3 per U.S. dollar Bolivar. The act was done to strengthen the government's financial condition and maintain economic growth. However, it is actually threatening the automotive industry revenues in the country.

Ford Motor Company (FMC) most affected due to good sales in the Latin American countries. "Devaluation is happening is very worrying and negative impact on our business. In fact, they threatened to send military forces if there is a producer began to raise prices," said Jim Farley as Ford Global Marketing, Sales, and Service was quoted as saying Detroitnews on January 14, 2010.

The entry of Ford in Venezuela are able to realize the construction of the factory with an area of 4.64 hectares in the country (Valencia) and a production base for the model Fiesta, Explorer, Ranger, and some pick-up F-series. The presence of even a factory capable of creating 2000 jobs and revenue from exports to the South American market.

Ford to increase sales in South America and even has made major investments to capture the market in the region.
"Last year, Venezuela is a critical market for us. We are committed to venture capital in this country," said Farley.

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Posted By Sutrisno
Created on Saturday, January 16, 2010

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