Ford expects 'significant' Q2 loss in South America

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DETROIT (Reuters) -- Ford Motor Co. said it expected to incur a "significant" loss in South America in the current quarter mainly due to low sales volumes and changes to Venezuela's foreign exchange rate.

The company is also expected to report a bigger loss in South America in 2014, Joe Hinrichs, executive vice-president, said on Wednesday.

The automaker's loss in South America deteriorated to $510 million in the first quarter ended March 31, from $218 million last year due to the currency devaluation in Venezuela and Argentina.

The Venezuelan government in March opened a new currency platform meant to boost access to dollars.

Ford's operations in Venezuela were disrupted last month due to a lack of foreign currency to import parts for assembly.

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