Venezuela's President Hugo Chavez has told car companies they must share their technology with local businesses or leave the country.Mr Chavez gave the ultimatum to Toyota, Ford, General Motors and Fiat during a public address. If the demand isn't met, he said: "I invite you to pack up your belongings and leave. I'll bring in the Russians, the Belorusians, the Chinese." Venezuela has nationalised most of the oil, metal and coffee industries. Mr Chavez attacked Toyota in particular, saying it was not producing enough four-wheel drive vehicles, which are used for public transport, and ordered an investigation.
Venezuela's President Hugo Chavez has told car companies they must share their technology with local businesses or leave the country.
Mr Chavez gave the ultimatum to Toyota, Ford, General Motors and Fiat during a public address.
If the demand isn't met, he said: "I invite you to pack up your belongings and leave. I'll bring in the Russians, the Belorusians, the Chinese."
Venezuela has nationalised most of the oil, metal and coffee industries.
Mr Chavez attacked Toyota in particular, saying it was not producing enough four-wheel drive vehicles, which are used for public transport, and ordered an investigation.
Venezuela's Chavez threatens to oust Toyota | Reuters
Spokesmen for Toyota's Venezuelan unit, which operates an assembly plant in the eastern state of Sucre, were not available to comment on Thursday. But a source at the company said Toyota had stopped assembling the model in question -- which he identified as Land Cruiser 70 -- in 2007, with the government's full knowledge. It planned to import instead, but had not received the necessary license, he added. "The government was informed, it can't be a surprise," the source said, adding that most Toyota managers were on holiday but were communicating with each other about Chavez's speech. In addition to Toyota, Japan's Mitsubishi as well as Hyundai and General Motors have assembly plants in South America's top oil-exporting nation, whose people are known for their love of cars.
Spokesmen for Toyota's Venezuelan unit, which operates an assembly plant in the eastern state of Sucre, were not available to comment on Thursday.
But a source at the company said Toyota had stopped assembling the model in question -- which he identified as Land Cruiser 70 -- in 2007, with the government's full knowledge.
It planned to import instead, but had not received the necessary license, he added.
"The government was informed, it can't be a surprise," the source said, adding that most Toyota managers were on holiday but were communicating with each other about Chavez's speech.
In addition to Toyota, Japan's Mitsubishi as well as Hyundai and General Motors have assembly plants in South America's top oil-exporting nation, whose people are known for their love of cars.
And this:
Venezuela's President Hugo Chavez has told car companies they must share their technology with local businesses
Does not entirely compute. These days, a car assembly plant is never built without a local - as in next-door or even on the plant premises - supplier infrastructure (which is where a lot of the technology, particularly advanced technology, comes from). Which means local workshare is easy to latch onto when the plant goes in, if the government shows any inclination to make a point. The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
