CARACAS, Venezuela — Venezuelan president Hugo Chávez has threatened to nationalize Toyota Motor's assembly plant and turn it over to a Chinese company. The incendiary statement came as Chávez accused Toyota of failing to produce enough vehicles appropriate for rural areas of the South American country. He made the same threat to Fiat and General Motors, which also operate plants in the country and also said the international automakers are not transferring enough of their corporate new technology to local plants.
The Wall Street Journal quoted Chávez as saying in a televised speech that his trade minister will inspect the Toyota plant and if it doesn't meet standards, "We'll take it, we'll expropriate it, we'll pay them what it is worth and immediately call on the Chinese." Toyota built some 13,000 vehicles in Venezuela last year, the paper reported.
The threat appears less idle in that the Chávez administration has already nationalized electrical, cement, coffee and oil services and many foreign-owned companies. However, industry watchers say the government is mainly looking to gain favor from the Venezuelan public by criticizing auto companies amid a recession and a shortage of cars for sale in the country. Toyota itself threatened to leave Venezuela earlier this year amid union problems after more than a half-century in the country.
Toyota is preparing to launch an ultra-low-cost car for emerging markets that will be sold in India and Brazil. Such a product could meet the demand for a vehicle better suited to the Venezuela market. There are no plans to sell the car in Venezuela at the moment.
Inside Line says: The inflammatory speech doesn't appear useful either to the consumer or the industry it's aimed at. — Laura Sky Brown, Correspondent
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deathtollwrx says:
07:20 PM, 12/28/2009
How much can Toyota lose if they stop selling cars to his country? I can't help but feel he is ruining things for his people.
deathtollwrx says:
07:19 PM, 12/28/2009
How much can Toyota lose if they stop selling cars to his country? I can't help but feel he is ruining things for his people.
deathtollwrx says:
07:19 PM, 12/28/2009
How much can Toyota lose if they stop selling cars to his country? I can't help but feel he is ruining things for his people.
imclarkkent says:
06:54 PM, 12/28/2009
@alan_s:
Don't be daft... anyone who says Chávez and Obama are the same really should consider NEVER POSTING ON A PUBLIC FORUM AGAIN.
To the topic, it would seem to me that Chávez is using this to bolster his image and little else. Even though he HAS done it in other sectors, doesn't necessarily make this particular scenario any less idle. I don't think it would be in his country's best interest to actually go through with nationalization. I am not versed in the legality of such a move, but if Toyota has already considered leaving, it is very possible that all Chávez really has the potential to do here is put thousands of people out of work.
alan_s says:
06:33 PM, 12/28/2009
Obama will be doing this here too. Don't laugh - THIS IS COMING TO AMERICA. There is no difference between Chavez and Obama.
cz75 says:
03:20 PM, 12/28/2009
Why take out his oil wells? The Venezuelan economy is already in shambles despite oil revenue.
dc325ix says:
11:50 AM, 12/28/2009
why are the american car companies there, let alone the rest, pull the hell out of that shithole of a country and screw Chavez; I cant wait for him to get ass kicked - he has got to be the biggest idiot leader of a country next to Mahmoud Ahmadinejad of Iran. And I agree with firstclass - in that I'm no greenie but it freakin pains me that he makes so much money off of us via oil - someone should take out his oil wells and then let see where he gets his money from.
firstclass says:
11:27 AM, 12/28/2009
I know and it seems especially prevalent in South American countries. You'd think that Venezuelans wouldn't stand for this. Every time I hear about Hugo Chávez he's taking more rights and property away from his people. Which rebel faction will oust him? Or will we see a modern day "Bay of Pigs"? anyways well said with the analogy at the end perhaps he'll oust himself.
mrryte says:
11:17 AM, 12/28/2009
firstclass says:
"His antics never surprise me but what does surprise me is that someone like him can come to power in these modern times."
Modern Times? This has been happening ever since the dawn of government. And it's a rather simple formula: identify the major issues of the common man, incite dissatifaction by blaming the existing government; promise "change" and a "fairer, more honest one" and most of the public will buy into it. Both Democratics and Republicans do it every presidential election year when the opposite party is in power.
As for Chavez, I say have Toyota call his bluff. Then we'll see what happens when his "threats" backfire and blow up in his face.
Give a fool enough rope for him to get entangled in and eventually hang himself with. ;-)
cz75 says:
09:48 AM, 12/28/2009
Blow the plant up and fire the workers. Leave that commie blowhard with nothing but the already present food and power shortages to show for his economic model.