Uniform Prices For Suppliers Could Threaten Segment's Survival

Sundecop, a Venezuelan governing body responsible for regulating, supervising and implementing prices in the country, is reportedly reviewing cost structures and plans to come up with a uniform pricing policy for the autos parts segment. BMI believes the move will not only weaken the recovery in the autos production segment but could also hurt the highly critical supply chain. In fact, we warn that the policy could have a highly detrimental and long-lasting impact on the local production segment as the potential closure of local suppliers could completely choke original equipment manufacturers (OEMs) of essential parts supplies.

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