Venezuela '02 Auto Sales Fell 41% On Year To 128,623 Units

sg.biz.yahoo.com Wednesday January 22, 1:11 AM 01-21-03 1156ET

Venezuela '02 Auto Sales Fell 41% On Year To 128,623 Units -2

CARACAS -(Dow Jones)- A total of 128,623 vehicles were sold in Venezuela in 2002, down about 41% from 216,977 units in 2001, the Venezuelan Automobile Industry Chamber reported Tuesday.

Sales were severely affected by a 92% drop in December to 1,627 units as a general strike that began the second day of the month shut thousands of businesses in various sectors including the automotive industry.

For the year, as a whole, the sales were slightly better than predictions made by industry officials who had forecasted an almost 50% drop due to higher interest rates and higher prices, particularly for imports, due to the bolivar's ($1=VEB1920) 46% devaluation in 2002. The currency has since devalued more than 25% this year.

Sales will likely be slow in January as the strike continues, with opposition leaders refusing to lift the action until President Hugo Chavez agrees to call early elections.

Chavez's critics blame his left-leaning policies for the country's deepening economic crisis, as the economy likely contracted about 8% last year amid unemployment of 17% and inflation of 31%.

Chavez has said the country's problems are due to an "economic coup" led by his opponents.

In 2002, General Motors Corp. (GM) led sales with 38,044 units, followed by Toyota Motor Corp. (TM) and Ford Motor Co. (F) with 20,934 and 17,971 vehicles, respectively.

-By Jehan Senaratna, Dow Jones Newswires; 58212 564 1339; jehan.senaratna@dowjones.com