There are only two thing sure in life: death and taxes.
Unfortunately for Japan, taxes may spell a death-knell for its auto industry. It's why the auto industry is trying to do something about it.
Presidents of Japan’s major automakers--Toyota Motor Corporation, Nissan Motor Company and the Honda Motor Company--have gathered 4,300,000 signatures via petition in an effort to end what they call high taxes on cars that threaten to hollow out manufacturing and wipe out jobs.
The plea from these auto heads, as well as from auto unions and car dealers is a rare show of unified force, and is based on the country's continuing struggles following the March 11, 2011 double disasters, a high Yen and sluggish car sales.
“This goes beyond the problem of a hollowing out of the economy. The industry could be destroyed,” explains Toyota President Toyoda Akio (surname first). “Once jobs are lost overseas, it is impossible to recover them.”
Officials want to retain manufacturing in Japan to keep technological development going and protect jobs.
But, the odds stacked against them due to a highly complex system of car taxation that is at least twice of the taxes in Germany and the United Kingdom and 49 times higher than the U.S rates. And, you can combine that with the high Japanese yen that has caused overseas sales to plummet.
The auto sector feels that by reducing the rate of taxes on new cares, domestic sales in Japan could rise by some 920,000 vehicles.
Japan’s annual sales of new autos have shrunk to about 4.25 million vehicles, falling from a peak 7.8 million vehicles in 1990.
Unfortunately for Japan, taxes may spell a death-knell for its auto industry. It's why the auto industry is trying to do something about it.
Presidents of Japan’s major automakers--Toyota Motor Corporation, Nissan Motor Company and the Honda Motor Company--have gathered 4,300,000 signatures via petition in an effort to end what they call high taxes on cars that threaten to hollow out manufacturing and wipe out jobs.
The plea from these auto heads, as well as from auto unions and car dealers is a rare show of unified force, and is based on the country's continuing struggles following the March 11, 2011 double disasters, a high Yen and sluggish car sales.
“This goes beyond the problem of a hollowing out of the economy. The industry could be destroyed,” explains Toyota President Toyoda Akio (surname first). “Once jobs are lost overseas, it is impossible to recover them.”
Officials want to retain manufacturing in Japan to keep technological development going and protect jobs.
But, the odds stacked against them due to a highly complex system of car taxation that is at least twice of the taxes in Germany and the United Kingdom and 49 times higher than the U.S rates. And, you can combine that with the high Japanese yen that has caused overseas sales to plummet.
The auto sector feels that by reducing the rate of taxes on new cares, domestic sales in Japan could rise by some 920,000 vehicles.
Japan’s annual sales of new autos have shrunk to about 4.25 million vehicles, falling from a peak 7.8 million vehicles in 1990.
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