Venezuela's vehicle production declined 91% year on year (y/y) in April and was down 88.4% y/y in the year-to-date (YTD) period, reports the Automobile Industry Chamber of Venezuela (Camara Automotriz de Venezuela: Cavenez). Over the first four months of 2016, only 896 vehicles were produced in Venezuela. Those were produced by Ford (837 units), Iveco (22 units) and Mack (37 units). Vehicle production in April reached only 144 units, compared with 1,601 in the same month of 2015. Four automakers report zero production through the end of April, including Fiat Chrysler Automobiles, General Motors, Mitsubishi and Toyota. Vehicle sales, including light, medium and heavy-duty vehicles, over the first four months were also in drastic decline, decreasing 84% y/y to 1,208 units, down from 7,551 units during January−April 2015. Regional media reports also state that Ford is using only 20% of its Venezuelan production capacity, with 65% of its staff currently not working.

Significance: Venezuela's ongoing inflation and currency issues continue to hamper the automotive industry and the economy and oil prices continue to fall. After a miserable 2015, 2016 so far has been even worse, with vehicle production in the first three months of 2016 falling sharply. A lack of access to foreign currency continues to hamper efforts at maintaining vehicle production, with an energy shortage and continued rampant inflation exacerbating a difficult situation. Following dismal first-quarter 2016 results, IHS again revised downward its light-vehicle sales and production forecast for Venezuela. IHS Automotive forecasts Venezuela's light-vehicle sales will contract from 15,458 units in 2015 to 3,120 units in 2016, a 79.8% decline. Rather than holding relatively steadily, vehicle production is forecasted to fall from an estimated 22,000 units in 2015 to 4,576 units in 2016, a decline of 79%. Growth in vehicle sales and production is forecasted to begin in 2017, although at a low rate.