|  
  |  
  |  
  |  
  |  
  |  
  |  
  |  
17 April 2014, Thursday
 
 
Today's Zaman
 
 
 
 

New Japan auto chief promises to keep production

TOYOTA MOTOR CORP PRESIDENT AKIO TOYODA SPEAKS DURING THE UNVEILING OF THE NEW COROLLA AXIO SEDAN (L) AND FIELDER WAGON AT A LINE-OFF CEREMONY IN NORTHERN JAPAN MAY 11, 2012. (PHOTO: REUTERS)
17 May 2012, Thursday /AP
Toyota Motor Corp. President Akio Toyoda took the helm at Japan's auto industry group Thursday with a promise to keep production and jobs at home to help along the country's recovery from last year's disaster.

Toyoda also sharply criticized government plans to raise Japan's sale tax as a "moral hazard" Thursday, and urged what he called overly high taxation on car ownership to be reformed first. 

"Companies that are working hard should be rewarded," he said at a Tokyo news conference to mark the start of his stint as head of the Japan Automobile Manufacturers Association. 

Japan has a complex system of taxation on cars estimated to be about twice or triple those in Great Britain and Germany, and a whopping 49 times the U.S. 

Toyoda said production, technological innovation and suppliers must be kept in Japan, but the consumption tax hike threatens to "hollow out" the mainstay of Japan Inc. 

The auto industry provides more than 5 million jobs in Japan, including auto workers, suppliers and dealers. 

Japanese automakers including Nissan Motor Co., Honda Motor Co. and Toyota are all making strong comebacks from production disruptions caused by the earthquake and tsunami in Japan, and flooding in Thailand last year. 

Much of that revival is coming from growth in markets such as fast-growing China, India and Brazil. 

In March, vehicle production in Japan doubled from a year earlier to more than 980,000 vehicles, highlighting a recovery from the devastating quake and tsunami last year, according to JAMA. 

Auto demand has gotten a perk lately from government-backed subsidies for ecological models, including hybrids and other fuel-efficient products. Fears are already growing about a fallout if the subsidies end. 

But in the longer-run, Toyota and other automakers all face serious challenges in Japan - a market that has been stagnant for years, and where younger people are losing interest in driving. 

Vehicle demand in Japan in 2011 totaled 4.2 million vehicles, down 15 percent from the previous year, but is expected to grow 19 percent to 5 million vehicles this year, according to the association. 

"In these tough times, we must take up the challenge of bringing revival back to Japan and of bringing back smiles to Japan," said Toyoda.

 
 
BUSINESS  Other Titles
Galatasaray to pay $35 mln in tax penalty
Twitter: No current deal to open office in Turkey
Ankara says Russia's South Stream pipeline could run to Turkey
Turkish central bank meeting eyed for signs of political meddling
Turkish cement firms eye assets after Holcim-Lafarge merger
CHP raises issue of irregularity in loans for Sabah-ATV sale
TUSKON key in trade with Turkey, top Russian group says
Number of job seekers hits 10-year high
Gül attends event of group labeled ‘traitors' by Erdoğan
'Banning social media disaster for any government's global image'
Pakistan publishes list to embarrass tax cheats into paying up
Turkish schools help to enhance trade relations with Africa
Unemployment rate sees decrease year-on-year in Jan
Pegasus Airlines to start flights to Bahrain
Installment payments down 16 pct since credit card regulation implemented
Euro zone's trade surplus widens on rising exports in February
Doğan Holding merges with publishing group
Turkey's Koç: We will concentrate our energy on investments
EU lawmakers complete financial system overhaul
Egypt limits air conditioning in mosques as power shortages worsen
...
Bloggers