Auto Parts Manufacturing Recovers in Venezuela

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President Maduro’s anti-inflationary policies have allowed the restoration of the country’s output levels.

Omar Bautista, the president of the Venezuelan Chamber of Auto Parts Manufacturers (FAVENPA), confirmed that his sector has seen a 10-percent average recovery during the first five months of 2024.

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“We experienced a slight recovery in those companies that continue to operate. Some companies are even developing new products at lower costs, and this has stimulated demand,” he said.

The companies supplying spare parts are among those with the most dynamism. On the other hand, the companies that have halted operations are those that supplied seats, air conditioners, and stamped metal parts to assembly companies, Bautista explained.

Currently, the Venezuelan Chamber of Auto Parts Manufacturers has 37 members and expects a growth of 23 percent by the end of the year.

For years, US policy towards Venezuela has been to undermine every aspect of society using unilateral coercive measures (aka sanctions).

Last week, @CarlosJRonVE spoke to us about the impact of the US blockade on Venezuela and how they’re overcoming it. pic.twitter.com/VENcLS5oWm

— CODEPINK (@codepink) July 2, 2024

Bautista hopes that the reactivation of vehicle assembly will continue to generate benefits for national auto parts producers. “We lost 40 percent of auto parts sales when vehicle assembly was halted,” he recalled.

The Venezuelan vehicle fleet has an average age of 22 years. Over 70 percent of vehicles are more than 15 years old and may have around 200,000 kilometers of use. In response to this situation, Bautista estimates that the Venezuelan automotive sector will be able to produce around 15,000 units this year.

Over the last years, President Nicolas Maduro’s anti-inflationary policies have allowed the restoration of this South American country’s output levels.

“In May, we had the lowest inflation index in eighteen years. Then in June, we had the lowest inflation level in 39 years of the Venezuelan economy,” he said, noting that despite the U.S. economic war his administration has achieved “changes the country needs and a growing and robust economy.”

#FromTheSouth News Bits | Venezuela: President Nicolas Maduro in his program Maduro+ gave authorization to resume talks with the United States in Doha, Qatar. pic.twitter.com/Dq3TYC52FE

— teleSUR English (@telesurenglish) July 2, 2024

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