GM to take $400m charge for Venezuelan currency

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News,Business,Auto Industry,GM,Currency,Venezuela,South America

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.

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