Known as the Iron Fist of South America, Hugo Chavez gained popularity not for being the Venezuelan President, but for simply becoming the notorious dictator, socialist of the south. He believes that he needs to pursue the "21st century socialism" to his country.
And with this ideology, Hugo Chavez demanded the automakers on his country, particularly Toyota, to produce more vehicles for his rural areas and to bring in more technology which the company is utilizing in its global operations. Chavez thinks that the Venezuelan Toyota plant is not trying to advance the technology used in the country.
Also, Chavez said that they'll send in inspectors to the plant to check for "rustic vehicles" and to check whether the plant manufactures "enough". To make a standard production number, the Chavez government is putting quotas which the automaker has to produce, or face expropriation.
“They’ll have to fulfill [the quotas], and if not, they can get out. We’ll bring in another company.” said Chavez.
The government will most likely take over the company if the quotas are not met by Toyota, and the plant will be given to potential Chinese investors.
“We’ll take it, we’ll expropriate it, we’ll pay them what it’s worth and immediately call on the Chinese, ” Hugo Chavez said.
Part of his "21st century socialism" is to nationalized a number of foreign-owned companies. The entire sector of the economy is also possible to be run by Chavez with this idea.
The Toyota plant in Venezuela has been in the country for quite sometime now. It has 50 years of production history in the country and currently employs about 2,000 workers.
