GM Taking $400M Charge For Venezuelan Currency
DETROIT (AP) -- General Motors Co. says it will take a charge of $400 million pretax in the first quarter because of a change in the way it values Venezuela's currency.
GM will no longer use the official exchange rate of 6.3 bolivars to the U.S. dollar. It is shifting to a rate of 10.7 bolivars to the dollar.
GM announced the change Thursday in a government filing.
The move came a day after Ford Motor Co. said it will take a $350 million charge in the first quarter because of a similar devaluation of Venezuela's currency.
Both companies will now using another government rate that is determined by periodic auctions.
Ford and GM both have manufacturing plants in Venezuela.