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Dana pulls out of Venezuela
supplies axels to ford
F
Dana Holding Sells Venezuelan Operations
17 minutes ago - DJNF

By Jeff Bennett
Dana Holding Corp. sold its Venezuelan operations on Monday, the latest company in the automotive industry to make significant changes in a nation dogged with economic uncertainty and tight currency controls.

Dana's Venezuelan subsidiary, C.A. Danaven, which employs about 540 people at two plants, was sold to Manufacturing and Logistics Solutions Ltd. Dana will take a $77 million fourth-quarter charge relating to the divestiture and will act as a supplier providing axle components to MLS, which provides parts to auto companies in Venezuela.

"This business decision was made to improve Dana shareholder value by reducing uncertainty associated with foreign currency and other regulatory pressures," Dana Chief Executive Roger Wood said in a statement. South America account for less than 5% of the company's annual sales, it said.

Auto makers and parts suppliers are struggling to protect their balance sheets as currency fluctuations within South America generated unexpected losses. New car demand in the region also continues to fall. Auto sales industrywide in Venezuela fell 76% in 2014 to 23,707 vehicles, and the country's auto production fell 72.5% to 19,759 vehicles, according to WardsAuto.com.