Collapse of both production and sales in Venezuela
- The Venezuelan market (PC + LCV) is expected to reach less than 20 000 units in 2014, if the trend of the first 6 months of 2014 confirms itself (8 236 sales). This low volume is equivalent to the sales of a country like Cyprus. The country had yet experienced sales volumes reaching nearly 500 000 units (2007), the equivalent of the automotive market of the Netherlands.
- The country experienced a drop in registrations of nearly 96% between 2007 and 2014. This drop corresponds to the introduction of restrictions on the import of vehicles by the Chavez government, with the aim of increasing local production. Vehicle importers (like any other business in the country) must apply for foreign currency in order to import their vehicles. Yet the automotive sector receives very little foreign currency granted to importers (1% in 2014).
- However, local production has not offset the drop in imports, declining from 172 000 units in 2007 (the highest year) to almost 15 000 units (estimates for 2014). Indeed, manufacturers are impacted by the same restrictions on the importation of spare parts. Therefore, Toyota and Chrysler in particular, have almost stopped their production since the beginning of the year, while Ford, GM and Mitsubishi have a virtually non existing production, plants stay open just for the sake of it.
- Consequently, the Venezuelan market is one where it takes nearly a year to buy a new vehicle and where used vehicles are more expensive than new vehicles. In this doldrums, the hottest product is the Mitsubishi Lancer (715 units in the first 6 months) in front of the Ford pickup C3500 (554 units) and Ford Silverado (505 units).
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