Venezuela Autos Report - Business Monitor International - Industry Reports

Venezuela Autos Report

Venezuela Autos Report - Business Monitor International - Industry Reports
Venezuela Autos Report
Published Aug 06, 2016
38 pages — Published Aug 06, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

Vehicle production in Venezuela declined -.- in ----, to --,--- units, as automakers were forced to cut production substantially after being left with significantly little access to hard currencies needed to import necessary components. Further adding to this, automakers have found themselves unable to operate effectively as Venezuela s business environment continues to deteriorate, with repeated market interventions by the Maduro government, creating further problems for automakers production planning and sales planning targets. ...Vehicle production in Venezuela declined -.- in ----, to --,--- units, as automakers were forced to cut production substantially after being left with significantly little access to hard currencies needed to import necessary components. Further adding to this, automakers have found themselves unable to operate effectively as Venezuela s business environment continues to deteriorate, with repeated market interventions by the Maduro government, creating further problems for automakers production planning and sales planning targets. We have held a considerably bearish outlook for vehicle production in Venezuela following the dramatic fall in oil prices in late ----, which has drastically lowered Venezuela s revenues from oil exports and, as a result, has severely cut the country s supply of hard currency. ...We have held a considerably bearish outlook for vehicle production in Venezuela following the dramatic fall in oil prices in late ----, which has drastically lowered Venezuela s revenues from oil exports and, as a result, has severely cut the country s supply of hard currency. This has meant the country s multi-tiered exchange rate system has become untenable with widespread capital restrictions and rationing of hard currency now limiting automotive manufacturers ability to pay foreign suppliers for vital component import orders.

...In ----, Venezuela s automotive market will sink further into crisis as vehicle sales and production are both paralysed and remain at all time lows, reaching sales of just --,--- units, a -.- drop from the estimated --,--- vehicles sold in ----. Although the government will attempt to implement new industrial policies to reawaken the automotive industry, which will significantly alter the way automakers do business in the economy, we still believe the industry will remain in paralysis. ...In ----, Venezuela s automotive market will sink further into crisis as vehicle sales and production are both paralysed and remain at all time lows, reaching sales of just --,--- units, a -.- drop from the estimated --,--- vehicles sold in ----. Although the government will attempt to implement new industrial policies to reawaken the automotive industry, which will significantly alter the way automakers do business in the economy, we still believe the industry will remain in paralysis. Production will remain frustrated by bottlenecks in the supply of imported components owing to the restrictions on currency exchange in the country. ...Production will remain frustrated by bottlenecks in the supply of imported components owing to the restrictions on currency exchange in the country. This will in turn hold back sales given that domestically produced vehicles will continue to be the only vehicles available to the wider public, given that currency restrictions are preventing dealers from importing completely built-up units (CBUs) to address the shortfall in production.

...Over ---- to ----, we do not see this situation improving given that our Country Risk team forecast exchange rate pressures to remain extreme based on our Oil and Gas team s expectation of oil prices remaining historically low over the period. The low oil price will continue to weaken import earnings and inflows of hard currency into Venezuela s economy, forcing the government to maintain its harsh currency restrictions on automotive producers. ...

  
Source:
Document ID
1749-0278
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Venezuela Autos Report" Aug 06, 2016. Alacra Store. Dec 08, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Venezuela-Autos-Report-2026-354>
  
APA:
Business Monitor International - Industry Reports. (2016). Venezuela Autos Report Aug 06, 2016. New York, NY: Alacra Store. Retrieved Dec 08, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Venezuela-Autos-Report-2026-354>
  
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