CARACAS: Venezuelans, who enjoy free highways and dirt-cheap gas, are struggling to buy cars as production falters thanks to a lack of foreign currency to pay for imported parts.

Vehicle assembly plants are facing their worst year in the oil-rich

Organisation of the Petroleum Exporting Countries (Opec) nation, producing five times fewer vehicles than last year due to the lack of imported supplies amid an economic crisis that began last year.

Most economic experts blame the South American country’s problems on a decade of rigid currency and price controls, as well rising debt, dependence on imports and stagnant economic growth.

Four of the seven assembly plants in the country – owned by Chrysler, Ford, Iveco and Toyota – have gradually stopped production since February.

Foreign carmakers must go through a complex bureaucratic process to obtain dollars.

Venezuela is only providing the US currency at the official rate of 6.3 bolivars to the dollar to importers of designated priority goods such as food and medical supplies.

Others who need dollars to pay overseas bills have to buy them at a higher rate at government-run auctions.

Many companies have complained that Caracas is not providing them with enough hard currency.—AFP