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Archive for the tag “Toyota Motor Corporation”

Toyota explains the Trump Administration: How damaging the tariffs are on the Auto Industry!

Just as the letter is leaked from Stephen Ciccone, Group Vice President of Government Affairs within the Toyota Motor North America INC, who had written this leaked letter to the Secretary of Commerce Wilbur Ross. Who has defended the tariffs on steel and aluminum, which has been on the European Union and NAFTA trading partners.

The reason why this letter is interesting, is because what he reveals, that the Government and Trump Administration will not reveal. The cost of the tariffs will be in jobs in the United States and also for the consumers. The most popular car produced by Toyota, the Toyota Camry with 30 % Foreign Parts, will be costing $ 1,800 more. The company has translated the cost, if the companies put the cost and compensation on the consumers. It would be 25%, an estimated loss of sales because of it could be up 2 million units or 10 % annually. If these numbers are true, than the Trump Administration are not only destroying imports, but local production and car-sales in general. That all because of the tariffs on these set-fixated goods, which is used to produce cars.

Therefore, these tariffs made are directly as the Toyota Company in the United States through the whole chain from factory to the consumer are around 470,000 people hired through the chain. While the manufacturing piece alone is 137,000 in 10 factories (soon 11). They are in Kentucky, Indiana, Mississippi, Texas, California, Alabama, Missouri, Tennessee, Michigan and West Virginia. So it is not like this is just hitting the favorable blue-states, which the Republicans hate. This would hit in the middle of the rust-belts and heartland f the Trump Voter.

Toyota Motor has really put themselves strategically in the United States, as well as put themselves in the midst of ironic territory. As they are in the areas where the President got the most support and also has the strongest loyalty, even as they are not serving the principals of the trade. The cost will be taken by the same people who voted him in and the added cost will be on the voters themselves. Either in lose of jobs in manufacturing, if not in lack of sales as people cannot afford to buy as many cars as they could before. That is not weird as the wages in the United States has been stagnant for so long. Therefore, the rise of prices combined with lack of surging wages, they cannot manage to afford the luxury of new cars, even used ones.

Just imagine the sudden rise of 25% on each imported car and also close to 2 Grands more expensive Camry. That will be costly for plenty of people. That is not mere cents on the can of beans as Wilbur Ross did on TV after the tariffs was made public. This here is much more costly and actually affect as many as 470,000 people in the United States. That is only in Toyota, what about the all American General Motors or FORD? Who knows how they will be hurt or how much added cost this will have on the consumer? Even how many people in their production chain from manufacturing to the consumer will be hurt by these efforts made by the state?

If Toyota is sending this warning and show the real affects on the economy by doing so. In just one company, what will it do to the whole industry and also the possible outcome of the provisions made by the tariff. That should be striking, but wisdom is rare in this administration. They are not concern with other, than their own pride and deluded acts of ignorance. This is destroying industry, not creating or salvaging anything.

Toyota is sending a signal to the Trump Administration, but will they care? No they won’t, unless they are Russian Oligarchs or Putin’s henchmen in the US. Peace.

Local Government Permanent Secretary Patrick Mutabwire 111 car’s we’re: ‘Gone in 60 seconds’!

Cars to RDCs Nambole 05.02.2016

The Auditor General John Muwanga was questioning the former Local Government and their use of allocated funds today the results of the check of use of monies is showing the lack of fiscal responsibility. The Local Government where allocated funds for cars for the Local Councillors and Chairpersons in the districts. As much as 111 persons where supposed to get cars to Councillors; what I wonder is it the same about the cars that we’re bought right before elections for the Regional Police Commanders (RPC) and District Police Commanders (DPC) that Hon. Frank Tumbewaze where showing off or Prime Minister Dr. Rukahana Ruganda did too.

But here are the main questions of the day and non-of-us is surprised at the actions of Local Government workers or civil servants diverting funds without following procedure. Take a look!

Misuse of Government funds:

“The former acting Permanent Secretary in the Ministry of Local Government, Patrick Mutabwire is on the spot over mis-allocation of 12 billion shillings. Mutabwire appeared before Parliament’s Public Accounts Committee on Wednesday September 28th 2016, to respond to queries raised in the Auditor General’s report of 2014/2015 financial year. One of the queries was on the diversion of the Ugx 12 billion, which was meant to procure 111 vehicles for all district chairpersons and six other vehicles for the ministry. However, it was noted that only Ugx 1.48 billion was spent on the vehicles procured from M/S Toyota Limited while the balance of Shs 5.5 million was diverted and utilized on recurrent expenditure without authority from the Permanent Secretary Treasury. “These funds were subsequently transferred to staff personal accounts, with Shs 4.3 billion paid for African Day of Decentralization celebrations,” the Auditor General said” (Parliamentarywatch.co.ug – ‘Former Local Government Minister On Spot Over Sh 12 Billion Misallocation’ (28.09.2016)

Link: http://parliamentwatch.ug/former-local-government-minister-on-spot-over-sh-12-billion-misallocation/).

What the OAG reports says:

“Diversion of funds meant to procure 111 District Chairperson’s vehicles:

During the year, the Ministry planned to procure one hundred eleven (111) and six (6) vehicles for the District chairpersons and the Ministry respectively. This involved a total contracted amount of USD 4,590,568 for all the vehicles inclusive of taxes. Funds totaling to UGX.7,013,611,179 (inclusive of taxes) were released to cater for part payment of the district vehicles and full payment of the Ministry vehicles. However, it was noted that only UGX.1,487,636,396 was spent on the vehicles procured from M/s Toyota Ltd and the balance of funds (UGX.5,525,974,783) was diverted and utilized on recurrent expenditure without authority from the PS/ST. These funds were subsequently transferred to staff personal accounts – UGX.4,361,949,108, payments for African Day of Decentralization (ADDLD) celebrations – UGX.118,277,664, cash withdrawals – UGX.120,000,000, fuel UGX.28,000,000, hotel bills – UGX.110,844,899, refund of borrowing to DLSP project and DTRF – UGX.315,674,140, rent – UGX.196,859,360 and others. I reviewed the advances to personal accounts and my observations were summarized in Paragraph 8.2. Use of Development funds to cater for recurrent expenditure is contrary to financial regulations” (OAG -ANNUAL REPORT OF THE AUDITOR GENERAL FOR THE YEAR ENDED 30TH JUNE 2015, P:191-192).

So the question is from the report that is already out and wonders how much money that we’re diverted to private accounts without authorizations. These where allocated and where tenders out, but they couldn’t followed the procedure of that either. Since the M/S Toyota Limited agreement can only been for parts of the allocated funds; if not they couldn’t have diverted the allocated monies away from it. There are no other explanations to it.

Because of this, unless the Police act a fool tomorrow, I have to look through the report from the Auditor General of Uganda when I have time, to see if I can see other judo tricks done by civil servants and ministries that has allocated monies wrong or spent monies on themselves as there been a normal for many ministries to not follow procedure in Uganda. But hey, they learn that from up-high. Peace.

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