January 03, 2007

Toyota's Demise Is Picking Up Speed

This hasn't been the Year of Toyota. I know, I have seen the headlines where Toyota is going to top GM in production in 2007. Toyota has been in the spotlight alot this year, and not the good kind of spotlight either.

They have had dozens of recalls, a huge sexual harrassement case, and other sundries stuff.

Looks like they are starting 2007 in the same vain

Toyota Motor Corp. has been ordered to pay about 2 billion yen in back taxes and penalties after it was found to have failed to declare taxable income, sources said.

The Nagoya Regional Taxation Bureau found that the nation's leading carmaker did not report 6 billion yen during three fiscal years through March 2004.

Of course, you won't see this in the American Media. I found this on a Japanese news website.

However, sources said Toyota sold vehicle parts and components at below-market rates to two overseas subsidiaries, reducing Toyota's taxable incomes by about 2 billion yen.

The money was used to finance sales promotion costs at the subsidiaries and help improve earnings results, the sources said.

(emphasis mine)

When I say Toyota subsidizes their supplies people think I am lying, well here is proof now.

Toyota has gotten greedy, they are getting too big and will stop at nothing to top the American Auto Makers in the US.

Folks, Toyota is not a god, don't make them out to be one to make yourself feel better about buying a Japanese vehicle.

I know your thinking "but they are made in the US", yes but most of their suppliers are Japanese, with parent companies in Japan. All profits are going back to Japan. And most of the product that the Japanese suppliers here in the US buy are from Japan. Don't kid yourself. Japan isn't helping America buy building it's assembly plants in the US, they are helping themselves by avoiding Import taxes.

Posted by Quality Weenie at January 3, 2007 11:26 AM | TrackBack