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Hugo Chavez threatens to expropriate Toyota plant

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Hugo Chavez threatens to expropriate Toyota plant

12/24/2009, 2:48 PMBY MARK KLEIS

Venezuela’s President Hugo Chavez has reportedly threatened Toyota – stating that it needs to produce more vehicles for its rural areas, as well as increase technology transfer, or face expropriation of its local assembly plant.

President Chavez demanded Wednesday that Toyota needed to bring in more technology from its global operations to the local plant, including manufacturing methods. Chavez complained that Toyota and other automakers were all failing to bring sufficient technology into Venezuela.

Chavez went on to state that his socialist government is going to apply strict quotas in regards to the number and types of vehicles automakers can produce in Venezuela. Chavez also ordered an immediate inspection of Toyota’s facilities to determine how many “rustic” vehicles it was producing, according to the Wall Street Journal.

Chavez said, “They’ll have to fulfill [the quotas], and if not, they can get out. We’ll bring in another company.”

Chavez then went on to explain that if the inspection reveals an improper vehicle production mix or that Toyota is bringing in enough technology, then the Venezuelan government will consider taking over the facilities and transferring it to Chinese companies.

“We’ll take it, we’ll expropriate it, we’ll pay them what it’s worth and immediately call on the Chinese, ” said Chavez.

According to the WSJ, Chavez has nationalized dozens of foreign-owned companies and even entire sectors of the economy as part of his move toward “21st century socialism.”

The local Toyota assembly plant in question currently employs over 2,000 workers, and has been in operation for over 50 years.

link:

http://www.leftlanenews.com/hugo-chavez-threatens-to-expropriate-toyota-plant.html

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“We’ll take it, we’ll expropriate it, we’ll pay them what it’s worth and immediately call on the Chinese, ” said Chavez.

and that will be a very low ball figure if they do. hahahah....but also, we wouldn't cheer this if it was GM or ford..... so... hopefully T knows what it's doing cause it sounds like a suicide mission as far as being economically smart.

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If I was Ford, Chrysler, or GM, I'd pull up anchor right now, ship all of the jobs to Brazil, ship all equipment and technology out of the country, and raze the building.

That country is heading for revolution.

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Toyota should get the hell out of there at all costs. It'll be horrible that people with decent jobs will suffer, but then they'll just add to the growing resistance to Hugo Chavez's dictatorship.

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If I was Ford, Chrysler, or GM, I'd pull up anchor right now, ship all of the jobs to Brazil, ship all equipment and technology out of the country, and raze the building.

That country is heading for revolution.

Venezuela is looking much like Cuba in 1958. As much as I don't like Toyota, I don't want to see them expropriated and their intellectual property given to the Chinese. I would hope any automaker has contingency plans in place in the face of a Venezuelan revolution.

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Chavez is insane. What if he nationalizes a Government Motors plant? That would lead to instant hot-war I would think.

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