Posted on 12/28/2009 1:41:50 AM PST by Michael van der Galien
In another attack on private enterprise in Venezuela, soon-to-be-President-for-life Hugo Chávez has given the Toyota Motor Corporation an ultimatum: give us your technological secrets and increase your local production of Land Cruiser 4×4 vehicles, or prepare to have your plants nationalized.
Toyota had discontinued production of this particular “rustic” all-terrain model used for public transport in poor and rural areas, where the transportation infrastructure is nearly non-existent and 4×4 travel is the only way to get around.
The Land Cruiser was not a big seller in Venezuela and Toyota made a business decision to import it on demand from elsewhere. This type of free market decision is anathema to a socialist such as Chávez:
What’s this that Toyota doesn’t want to make the ‘rustic’ model here? We must force them. And if they don’t, then they should leave and we’ll bring another company in … The Chinese want to come and they make ‘rustic’ models.
Notice the explicit threat to use force, which is a typical socialist tactic (which Chávez has employed previously against Venezuela’s energy and communications industries, which he ultimately ended up nationalizing–to the great detriment of the country) when on is trying to assert absolute control.
Chávez has ordered his minions to inspect the Toyota plant. If the inspection reveals that Toyota has not transferred all of its technology to the Venezuelan Government, he will seize it...
(Excerpt) Read more at newsrealblog.com ...
Toyota’s best choice is a private jet for their important Venezuelan employees along with some thermite for the production line.
Great advice.
Looks like more auto workers will be out of work.
Hmmm, sounds somewhat familiar.
I seem to recall a Democrat controlled congress some years ago threatening certain banks with the blockage of mergers and other private corporate maneuvers if the banks did not make real estate loans in high risk inner city areas.
Maybe not quite the same thing but a similar type of tactic.
Yep. In the long run it would be a lot cheaper for them to destroy their plant if they are to be taken over by Chavez. I don’t know about thermite, but to stand back and allow any competitor from taking over their factory and competing with them all around south/central america would be bad business. So if they are to lose, they would be best advised to destroy it and force competitors to build out from scratch.
I guess Chaves does not want companies to come to Venezuela.
I’m sure Hugo can make it work. He’s a lot smarter than 0bama, after all.
“The Chinese want to come.”
On what terms, with what for collateral?
Hey, don’t go criticizing Barry’s buds. Some of them are having quite a hard time keeping a lid on the uppity peons in Iran.
Commie Hugo Chavez is envious that fellow communists in the US Democrat Party are in the lead, having already seized most of the Auto Industry.
Looks like it is time for Tokoyo to send in Godzilla.
Don’t understand why any foreign industry is still operating in this country and if they are, why they have not left yet. This place is an accident waiting to happen financially.
Venezuela GDP = $319.443 billion (USD)
Toyota Global Assets = $263.42 billion (USD)
In a war between Toyota and Venezuela, I’ll put my money on Toyota to kick Baby Huey’s ass.
Joke is on Chavez. Venezuela has a Toyota assembly plant. He can nationalize the facility but he has no parts to assemble. lol
Yea... then Chavez can nationalize the rubble. :)
Paging Francisco D’Anconia, you are needed in Caracas, STAT!
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