Ford takes US$800m charge on currency woes

Detroit

FORD Motor Co has said that it was taking a charge related to its Venezuelan operations that will cut fourth-quarter net profit by US$700 million, as companies scramble to shield their bottom lines from the country's volatile currency.

For more than a year Ford has said that its ability to get auto parts for its operations in Venezuela has been hampered by the valuation of the Venezuelan bolivar, and made the accounting change effective from Dec 31.