GM Taking $600 Million Charge

General Motors Co. will take a roughly $600 million pretax charge in the second quarter after changing how it approaches the exchange rate on Venezuelan currency, a spokesman for the Detroit auto maker said on Thursday.

The auto maker is moving to a system that values Venezuelan currency at 200 bolivars to one U.S. dollar, as opposed to a previous approach of 13 to 1, the spokesman said. The charge isn't expected to affect operating results in Venezuela or South America more broadly, the spokesman said.

The special charge follows a $400 million devaluation GM took in the first quarter related to Venezuelan currency. The auto maker has also taken previous charges amid what it describes in regulatory filings as the "hyperinflationary status of the Venezuelan economy."

GM has warned it expects to halt vehicle production in Venezuela in July amid currency-related difficulties. GM makes Chevrolet Silverado trucks and a few car models at a factory in Valencia.

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