Mitsubishi Shuts Down Venezuela Production
Mitsubishi has opted to halt production at its Venezuelan subsidiary as the result of a delay in importation of parts for assembly. The move is the latest effect of government turbulence, which has resulted in numerous complaints about the speed with which necessary good are imported into the country.
The production stoppage at MMC Automotriz will last at least a month, according to union official Jahaziel Bolivar, who told Reuters that vital production materials were being held up at a port in the western part of the country.
Through the first two-thirds of 2014, Venezuelan car production is down a staggering 83 percent. Through August of last year, 50,967 cars were built in the South American country. Through the same eight-month period this year, a mere 8,508 vehicles have been manufactured.
There is no timetable for when the production plant, located in Barcelona, Anzoátegui State, will reopen. Over the past several years, the plant has been at the center of numerous disputes regarding labor unions and workers’ rights.
A major factor in the nationwide production slowdown has to do with high inflation, which reached an astounding 63.4% in August and is the highest inflation in all of Latin America.
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