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Toyota confirms continuity of operations in Venezuela

Toyota confirms continuity of operations in Venezuela

Posted by Dubraswka Aguilar on November 12, 2014

The words of Steve St. Angelo, president executive of Toyota Latin America, were blunt: "We will continue here, but I must say that we have launched the difficulties and challenge the team to be reborn and be more competitive in low volumes ... I'm not giving up for lost ground in Venezuela and I'm not giving up.

" With these statements, the head of Toyota's operations in the region left for granted that the Japanese firm will maintain its operations in Venezuela, despite the dramatic decrease in plant of Cumana (Sucre State), which this year will come soon more than 3,000 units, one-third of the assembly last year and accounting for idle capacity that exceeds 90%.

While the company has not disclosed the details of the visit of St. Angelo, was known that focused on refining the brand plans for the next five years, this in order to align with the strategy for the region.

Industry sources said that the visit of St. Angelo was pending since last year, when he was appointed as head of operations of the brand in Latin America and the Caribbean, a position that did not exist until then.

 "It was a visit for the plant and has direct contact with the Venezuelan subsidiary. He is going to all the countries of the region in which Toyota operates, "said a private source close to the company.

Notably, in February, when Toyota announced Venezuela indefinite shutdown by depleting inventories, President Nicolas Maduro Venezuela requested the presence of the regional chief of the Japanese firm, to discuss the reasons for temporary closure. However, no senior official of the brand arrived in the country then.

St. Angelo, who was not offered an interview in Caracas but upon arrival in Bogotá, did not release any new investments or launching new models in Venezuela, where the industry will close this year with one of the worst historical records as a result of the strong reducing delays and foreign exchange allocations.

This contrasts sharply with the projects of the biggest automaker in the world in Latin America, since in Argentina announced investments of $ 800 million to bolster production, while Brazil will inject about $ 500 million to add an engine plant running. In Mexico will invest $ 240 million in a new factory.

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