In a strange turn of events, Toyota may be expelled from Venezuela if it doesn’t produce an all-terrain vehicle for public transport in poor and rural areas. In addition to insisting on such transportation, the county’s socialist President Hugo Chavez said he would not hesitate to expel the Japanese automaker or any other automaker should they fail to openly share technology with locals.
Over the years, Chavez has nationalized many areas of Venezuela’s economy, but automobile manufacturing has remained untouched by these policies. Four-wheel drive vehicles are Chavez’s main concern considering that they remain crucial for transportation in the country since rural areas have harsh terrain and lack of smooth roads.
Toyota is one of the world’s largest automakers, which is partly why Chavez has set its sights on the automaker. In addition to Toyota, General Motors, Mitsubishi, and Hyundai have manufacturing facilities in Venezuela. Chavez stated that if these automakers were unwilling to transfer technology to locals, Chinese or Russian automakers will be taking their place in the country.
Car sales have fallen in Venezuela this year, and the global recession has been particularly harmful to the auto industry there. Even so, Toyota’s manufacturing plant has been in the country for over 50 years, and employs over 2,000 workers, which could make Toyota’s eviction harmful to the local economy.
* * *
Read more Toyota news as it becomes available.