[TODAY'S TOP STORIES] from [The Japan Times]
[BUSINESS NEWS]
Friday, May 29, 2009
Mitarai calls for big sales tax hike
(Kyodo News) Top business leader Fujio Mitarai is calling for doubling the consumption tax to at least 10 percent in the latter half of the next decade to meet ballooning social security costs.
"We need to have a double-digit tax rate by the latter half of the 2010s in order to secure stable financial resources for pensions, health care and nursing care," the chairman of the Japan Business Federation (Nippon Keidanren) said in a recent interview with media organizations.
The consumption tax is currently 5 percent.
Mitarai will enter his last year as the head of Japan's most influential business lobby after the federation's annual general meeting Thursday.
Mitarai, who has repeatedly lobbied for fundamental reform of the taxation and social security systems, said the government should prepare for a tax hike by 2011, which would be in line with Prime Minister Taro Aso's plan to raise taxes around that time if the economy shows signs it is recovering.
As for Japan's outlook, Mitarai, who is also chairman of Canon Inc., said things are looking better because progress is being made in inventory adjustments.
"Exports are ceasing to decline and showing some signs of recovery," he said.
If the additional stimulus steps now pending in the Diet are taken, the economy may hit bottom as early as the July-September quarter, Mitarai said.
As for Japan's medium-term goal for reducing greenhouse gas emissions by 2020, Mitarai called for the government to explain the costs and burdens the public will have to shoulder to meet that goal.
[BUSINESS NEWS]
Friday, May 29, 2009
Eco-points prove boon for electronics sales
(Kyodo News) Sales of flat-panel television sets jumped 60 percent and those of large refrigerators surged 120 percent in May thanks to the government's eco-point program aimed at boosting sales of ecologically friendly home appliances, a marketing company said.
GfK Marketing Services Japan Ltd. surveyed 4,500 electronics shops nationwide during the week of May 18 to 24, comparing the figures with the same period last year.
As part of its economic stimulus package, the government launched the system earlier in May to give consumers subsidies to buy ecologically friendly electronic products, such as TVs and air conditioners that consume little power.
"The measure is very well-focused. It's working greatly to stimulate the economy," said Fumio Otsubo, president of Panasonic Corp.
"The (eco-point) system is bringing great effect," Setsuhiro Shimomura, president of Mitsubishi Electric Corp. said.
Some economists, however, suspect the effect will not last long as many companies have decided to reduce summer bonuses for workers amid the deepening recession.
Sales of air conditioners surged 45 percent in the week starting May 11 compared with the same period last year, but tumbled 7 percent the following week.
Kazuharu Miura, senior economist at Daiwa Institute of Research, argued that the eco-point system will not greatly help electronics firms because the effects are very small when compared with the size of their worldwide sales.
"(In addition), bonuses of workers are now expected to decrease. I don't think many people will buy new home appliances to replace old ones," Miura said.
[BUSINESS NEWS]
Friday, May 29, 2009
Toyota, Nissan gear down
Pair led global output cuts as sales sagged in North America
(Bloomberg) Toyota Motor Corp. and Nissan Motor Co. led a drop in global auto production as sales in North America plunged amid rising unemployment.
Toyota's output dropped for the ninth straight month, falling 50 percent to 366,125 units in April from a year earlier, the company said Thursday. Nissan built 183,248 vehicles, down 38 percent, it said. Honda Motor Co. made 231,399 autos, 30 percent fewer.
Japanese automakers slashed output in North America in April to reduce inventories as their combined sales in the United States, the world's largest auto market, plunged 36 percent in April.
Carmakers' domestic production also fell as the government began a tax incentive program aimed at spurring sales of fuel-efficient cars, including new hybrids introduced by Toyota and Honda.
"Production cuts among the companies are nearing the bottom," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. "Demand for fuel-efficient cars, especially Toyota's Prius, is robust, and that will help support output."
Toyota said that it won more than 80,000 orders before unveiling the revamped Prius hybrid on May 18 in Japan. The company said Wednesday it is boosting production of the model.
Toyota's production in Japan fell 56 percent to 145,516 units in April, as exports dropped 71 percent, the company said. Overseas production plunged 44 percent to 220,609, as Toyota slashed output in North America and Europe.
Domestic production will improve in May, compared with April, Toyota spokesman Yuta Kaga said.
The carmaker, which halted domestic output for three days in April, plans normal domestic production after May, President Katsuaki Watanabe said March 26. The Prius is built at two factories in Japan and a plant in China.
Toyota said May 20 that "a slight uptick" in its U.S. sales in May may mark the end of the collapse in industrywide demand there. Still, major improvements are unlikely to happen before next year, Jim Lentz, president of Toyota's U.S. sales unit, said at the time.
Honda built 57,066 vehicles in Japan, down 38 percent, in May, the company said. Exports slumped by a record 70 percent to 16,418 vehicles. Production abroad dropped 27 percent to 174,333, Honda said.
Its Insight became the first hybrid to become the best-selling model excluding minicars in Japan in April.
Domestic output at Nissan fell 50 percent to 49,663 units in April, as it prepared to introduce revamped fuel-efficient models, the automaker said. Nissan's Chief Operating Officer Toshiyuki Shiga said on May 19 that domestic orders of 14 of its fuel-efficient models, including the Cube and Tiida, have risen about 30 percent in May helped by government incentives.
Mazda Motor Corp., Japan's fifth-largest automaker, said its global production fell 44 percent in April.
The company canceled two holidays scheduled in June at two of its domestic plants to meet rising demand for its autos in countries including the U.K. and Germany, it said on May 20.
[BUSINESS NEWS]
Friday, May 29, 2009
Steel blocks Unison bid for Aderans
(Compiled from Bloomberg, Kyodo) Steel Partners Japan Strategic Fund (Offshore) LP won shareholder support Thursday to install a new board at Aderans Holdings Co., blocking a bid for Japan's largest wigmaker.
Aderans investors voted for Steel Partners' nominees over company-backed candidates that included three representatives from Japanese buyout fund Unison Capital Inc., an Aderans spokesman said at a meeting in Tokyo.
The new Aderans president is Nobuo Watabe, 66, a former vice president of the wigmaker who is backed by Steel.
The victory blocks a 17.6 billion offer from Unison for a stake of at least 35.2 percent that would have displaced Steel Partners, the fund run by U.S. investor Warren Lichtenstein, as the wigmaker's largest shareholder. It continues New York-based Steel Partners' efforts to overhaul governance at Aderans after it ousted Chief Executive Officer Takayoshi Okamoto and six directors last year.
"With today's vote, Aderans' shareholders demonstrated their strong desire for constructive change in the company's leadership and direction and have set a new milestone for corporate governance in Japan," Warren Lichtenstein, head of Steel Partners, said in a statement issued after the meeting.
"I firmly believe that the newly elected board is willing, committed and motivated to effect meaningful positive change in the management and corporate performance of Aderans," the statement said.
To fend off Steel's demands, Aderans teamed up with Unison Capital to propose the appointment of seven board members, including the three outside members from the Japanese fund.
Unison raised its offer for Aderans by 20 percent this week to 1,200 a share after Steel began lobbying shareholders to reject the approach.
Aderans' previous board backed Unison's offer last month, saying the alliance would strengthen its business. The wigmaker in April posted a full-year deficit of 2.17 billion, its first in four years, on declining demand for wigs.
[BUSINESS NEWS]
Friday, May 29, 2009
Mitarai calls for big sales tax hike
(Kyodo News) Top business leader Fujio Mitarai is calling for doubling the consumption tax to at least 10 percent in the latter half of the next decade to meet ballooning social security costs.
"We need to have a double-digit tax rate by the latter half of the 2010s in order to secure stable financial resources for pensions, health care and nursing care," the chairman of the Japan Business Federation (Nippon Keidanren) said in a recent interview with media organizations.
The consumption tax is currently 5 percent.
Mitarai will enter his last year as the head of Japan's most influential business lobby after the federation's annual general meeting Thursday.
Mitarai, who has repeatedly lobbied for fundamental reform of the taxation and social security systems, said the government should prepare for a tax hike by 2011, which would be in line with Prime Minister Taro Aso's plan to raise taxes around that time if the economy shows signs it is recovering.
As for Japan's outlook, Mitarai, who is also chairman of Canon Inc., said things are looking better because progress is being made in inventory adjustments.
"Exports are ceasing to decline and showing some signs of recovery," he said.
If the additional stimulus steps now pending in the Diet are taken, the economy may hit bottom as early as the July-September quarter, Mitarai said.
As for Japan's medium-term goal for reducing greenhouse gas emissions by 2020, Mitarai called for the government to explain the costs and burdens the public will have to shoulder to meet that goal.
[BUSINESS NEWS]
Friday, May 29, 2009
Eco-points prove boon for electronics sales
(Kyodo News) Sales of flat-panel television sets jumped 60 percent and those of large refrigerators surged 120 percent in May thanks to the government's eco-point program aimed at boosting sales of ecologically friendly home appliances, a marketing company said.
GfK Marketing Services Japan Ltd. surveyed 4,500 electronics shops nationwide during the week of May 18 to 24, comparing the figures with the same period last year.
As part of its economic stimulus package, the government launched the system earlier in May to give consumers subsidies to buy ecologically friendly electronic products, such as TVs and air conditioners that consume little power.
"The measure is very well-focused. It's working greatly to stimulate the economy," said Fumio Otsubo, president of Panasonic Corp.
"The (eco-point) system is bringing great effect," Setsuhiro Shimomura, president of Mitsubishi Electric Corp. said.
Some economists, however, suspect the effect will not last long as many companies have decided to reduce summer bonuses for workers amid the deepening recession.
Sales of air conditioners surged 45 percent in the week starting May 11 compared with the same period last year, but tumbled 7 percent the following week.
Kazuharu Miura, senior economist at Daiwa Institute of Research, argued that the eco-point system will not greatly help electronics firms because the effects are very small when compared with the size of their worldwide sales.
"(In addition), bonuses of workers are now expected to decrease. I don't think many people will buy new home appliances to replace old ones," Miura said.
[BUSINESS NEWS]
Friday, May 29, 2009
Toyota, Nissan gear down
Pair led global output cuts as sales sagged in North America
(Bloomberg) Toyota Motor Corp. and Nissan Motor Co. led a drop in global auto production as sales in North America plunged amid rising unemployment.
Toyota's output dropped for the ninth straight month, falling 50 percent to 366,125 units in April from a year earlier, the company said Thursday. Nissan built 183,248 vehicles, down 38 percent, it said. Honda Motor Co. made 231,399 autos, 30 percent fewer.
Japanese automakers slashed output in North America in April to reduce inventories as their combined sales in the United States, the world's largest auto market, plunged 36 percent in April.
Carmakers' domestic production also fell as the government began a tax incentive program aimed at spurring sales of fuel-efficient cars, including new hybrids introduced by Toyota and Honda.
"Production cuts among the companies are nearing the bottom," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd. "Demand for fuel-efficient cars, especially Toyota's Prius, is robust, and that will help support output."
Toyota said that it won more than 80,000 orders before unveiling the revamped Prius hybrid on May 18 in Japan. The company said Wednesday it is boosting production of the model.
Toyota's production in Japan fell 56 percent to 145,516 units in April, as exports dropped 71 percent, the company said. Overseas production plunged 44 percent to 220,609, as Toyota slashed output in North America and Europe.
Domestic production will improve in May, compared with April, Toyota spokesman Yuta Kaga said.
The carmaker, which halted domestic output for three days in April, plans normal domestic production after May, President Katsuaki Watanabe said March 26. The Prius is built at two factories in Japan and a plant in China.
Toyota said May 20 that "a slight uptick" in its U.S. sales in May may mark the end of the collapse in industrywide demand there. Still, major improvements are unlikely to happen before next year, Jim Lentz, president of Toyota's U.S. sales unit, said at the time.
Honda built 57,066 vehicles in Japan, down 38 percent, in May, the company said. Exports slumped by a record 70 percent to 16,418 vehicles. Production abroad dropped 27 percent to 174,333, Honda said.
Its Insight became the first hybrid to become the best-selling model excluding minicars in Japan in April.
Domestic output at Nissan fell 50 percent to 49,663 units in April, as it prepared to introduce revamped fuel-efficient models, the automaker said. Nissan's Chief Operating Officer Toshiyuki Shiga said on May 19 that domestic orders of 14 of its fuel-efficient models, including the Cube and Tiida, have risen about 30 percent in May helped by government incentives.
Mazda Motor Corp., Japan's fifth-largest automaker, said its global production fell 44 percent in April.
The company canceled two holidays scheduled in June at two of its domestic plants to meet rising demand for its autos in countries including the U.K. and Germany, it said on May 20.
[BUSINESS NEWS]
Friday, May 29, 2009
Steel blocks Unison bid for Aderans
(Compiled from Bloomberg, Kyodo) Steel Partners Japan Strategic Fund (Offshore) LP won shareholder support Thursday to install a new board at Aderans Holdings Co., blocking a bid for Japan's largest wigmaker.
Aderans investors voted for Steel Partners' nominees over company-backed candidates that included three representatives from Japanese buyout fund Unison Capital Inc., an Aderans spokesman said at a meeting in Tokyo.
The new Aderans president is Nobuo Watabe, 66, a former vice president of the wigmaker who is backed by Steel.
The victory blocks a 17.6 billion offer from Unison for a stake of at least 35.2 percent that would have displaced Steel Partners, the fund run by U.S. investor Warren Lichtenstein, as the wigmaker's largest shareholder. It continues New York-based Steel Partners' efforts to overhaul governance at Aderans after it ousted Chief Executive Officer Takayoshi Okamoto and six directors last year.
"With today's vote, Aderans' shareholders demonstrated their strong desire for constructive change in the company's leadership and direction and have set a new milestone for corporate governance in Japan," Warren Lichtenstein, head of Steel Partners, said in a statement issued after the meeting.
"I firmly believe that the newly elected board is willing, committed and motivated to effect meaningful positive change in the management and corporate performance of Aderans," the statement said.
To fend off Steel's demands, Aderans teamed up with Unison Capital to propose the appointment of seven board members, including the three outside members from the Japanese fund.
Unison raised its offer for Aderans by 20 percent this week to 1,200 a share after Steel began lobbying shareholders to reject the approach.
Aderans' previous board backed Unison's offer last month, saying the alliance would strengthen its business. The wigmaker in April posted a full-year deficit of 2.17 billion, its first in four years, on declining demand for wigs.
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