By Jeff Bennett 

Dana Holding Corp. sold its Venezuelan operations on Monday, the latest company in the automotive industry to make significant changes in a nation dogged with economic uncertainty and tight currency controls.

Dana's Venezuelan subsidiary, C.A. Danaven, which employs about 540 people at two plants, was sold to Manufacturing and Logistics Solutions Ltd. Dana will take a $77 million fourth-quarter charge relating to the divestiture and will act as a supplier providing axle components to MLS, which provides parts to auto companies in Venezuela.

"This business decision was made to improve Dana shareholder value by reducing uncertainty associated with foreign currency and other regulatory pressures," Dana Chief Executive Roger Wood said in a statement. South America account for less than 5% of the company's annual sales, it said.

Auto makers and parts suppliers are struggling to protect their balance sheets as currency fluctuations within South America generated unexpected losses. New car demand in the region also continues to fall. Auto sales industrywide in Venezuela fell 76% in 2014 to 23,707 vehicles, and the country's auto production fell 72.5% to 19,759 vehicles, according to WardsAuto.com.

Ford Motor Co. last week said it would take an $800 million charge against fourth-quarter earnings to remove Venezuelan operations from consolidated earnings, largely to shield itself against exchange rate problems between the Venezuelan bolívar and the U.S. dollar. Ford plans to record cash and recognize income from the country when it is paid for parts.

Dana, based in Maumee, Ohio, warned at the start of 2014 it was facing increasing financial hardship in the region saying it expected costs to cut its full-year earnings by as much as $40 million. The company will report its fourth-quarter results on Feb. 19.

Joseph Spak, an auto analyst with RBC Capital Markets, said Dana's move is a "clear positive" for the company and its investors. "Venezuela is a relatively small part of the company's sales exposure that would often cause out-sized volatility (and headaches) given how difficult it has been for a U.S.-based company to operate in the country and access cash."

Shares in Dana were up less than 1% in recent trading to $21.54.

Write to Jeff Bennett at jeff.bennett@wsj.com

Corrections & Amplifications

Manufacturing and Logistics Solutions is acquiring C.A. Danaven, Dana Holding's Venezuelan auto-parts operation. An earlier version of this article said C.A. Danaven was acquiring the business.

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