Hugo Chavez will expel Toyota from Venezuela. We have all the details about the South American battle.
Hugo Chavez, President of Venezuela, announced that Toyota may be expelled from the country if it continues to build a replacement for the Land Cruiser 70 4×4 here. Chavez believes that the all-terrain vehicle is essential for transportation in the less-developed areas of the country.
Toyota replied by saying that the automaker had requested permission to import Land Cruisers well before Chavez’ comments. According to Toyota, the Venezuelan government has yet not ruled on the import license request. The Venezuelan production of Land Cruiser 70 was halted in 2007. The government was informed about the model’s cancellation in advance.
Last Wednesday, Chavez made the threats at an event in Caracas. He stated that his government should force Toyota to make “rustic” cars. According to reports, the Chinese want to move in and make “rustic” models.
Chavez would probably authorize the confiscation in Venezuela of Toyota factories, possibly to create a national automaker. In 1999, Chavez was elected president and has since nationalized the oil and energy industries in Venezuela.
Chavez stated, “Companies that come here to establish themselves must be prepared to transfer technology to us.”
“If they don’t want to, they should leave. They are invited to get up and leave.
Toyota requested diplomatic assistance from Japan’s government. Chavez’ office has never contacted Toyota to discuss the matter.