Ford to Sell Venezuelan Cars in Greenbacks in Dollarization

[Little Tich]

Source: Bloomberg Business News

Ford Motor Co. will sell some of its cars in Venezuela in dollars to alleviate a shortage of greenbacks that has slashed its imports and paralyzed its plant, according to a labor union official.

“Car sales will be in dollars,” Gilberto Troya, head of the Ford Motors de Venezuela union, said by telephone from Valencia, Venezuela. He said the company informed the union of the deal with the government April 28. “This could lead to a complete dollarization of the sector.”

Under the deal, customers will give dealerships dollars, which will be used to import car parts to be assembled at the Valencia plant, Troya said. Customers could still buy some of the cheaper models such as the Fiesta in bolivars, he said.

The second-largest U.S. automaker this month stopped production in Venezuela because it had no foreign currency to import parts. A dollar drought caused by currency controls and lower oil sales has led to shortages of everything from motors to paper, paralyzing production and causing the deepest recession in Latin America.

Read more: http://www.bloomberg.com/news/articles/2015-05-08/ford-to-sell-venezuelan-cars-in-greenbacks-in-slow-dollarization

[Demeter]

1. Three thoughts on this

1. they won't get enough takers to make it worth Ford's while

2. The Fascists will be easier to identify, if they do fall into this scheme

3. Maduro would be a fool to ignore point 2

[FLPanhandle]

2. As for point #2

Maduro's friends and the best ranking government officials are the ones with easy access to the dollars.

I think he knows who they are already.

[hack89]

3. The Boligarchs are the ones with the dollars. nt

[Kurska]

4. Yes wanting to use a stable currency with actual purchasing power is fascism

Inflation in Venezula might hit 200% this year. Imagine if your paychecks at the start of the year were worth a 1/3rd of what they were at the end of the year.

Saving any money is basically pointless, meaning that it is nearly impossible to build up any kind safety fund using Bolivar.

[Igel]

5. Different definition of fascism.

It's not just a merger of state power with corporatism, an emphasis on militarism, coupled with ethnic supremacy as is so often the case with the definition of "fascism" in the US and W. Europe.

It's just being anti-socialist (or by default pro-capitalist). The other three things, however reprehensible, are fine and dandy for a lot of people as long as you have the right rhetoric and policies. The real problem with fascist Germany was opposing the USSR. And, by extension, socialist movements around the world. It's a handy GTA (general term of abuse).