By Mike Spector
General Motors Co. will take a roughly $600 million pretax
charge in the second quarter after changing how it approaches the
exchange rate on Venezuelan currency, a spokesman for the Detroit
auto maker said on Thursday.
The auto maker is moving to a system that values Venezuelan
currency at 200 bolivars to one U.S. dollar, as opposed to a
previous approach of 13 to 1, the spokesman said. The charge isn't
expected to affect operating results in Venezuela or South America
more broadly, the spokesman said.
The special charge follows a $400 million devaluation GM took in
the first quarter related to Venezuelan currency. The auto maker
has also taken previous charges amid what it describes in
regulatory filings as the "hyperinflationary status of the
Venezuelan economy."
GM has warned it expects to halt vehicle production in Venezuela
in July amid currency-related difficulties. GM makes Chevrolet
Silverado trucks and a few car models at a factory in Valencia.
Write to Mike Spector at mike.spector@wsj.com
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