General Motors Co. said it expects to take a pretax charge of about $600 million this quarter because of the devaluation of Venezuela’s currency.
Tom Timko, the Detroit-based automaker’s controller and chief accounting officer, gave the figure on a conference call Thursday.
Lower oil prices have hurt Venezuela’s economy, and currency controls have contributed a dollar drought in the South American nation. GM said in filings after reporting its first-quarter earnings that it’s using a different method to measure the value of its non-U.S. dollar assets and liabilities. The company didn’t say at the time what the effect on its financial results would be.
Ford Motor Co. said in January that it would take an $800 million pretax charge because the inability to exchange dollars for bolivars had restricted operations in the country.
GM fell less than 1 percent to $34.94 at 12:31 p.m. in New York.