TOYOTA:   This old expression that "your true colors will finally show" applies not only to the behavior of individuals but also to companies.  For the past several weeks it has been Toyota's turn to reveal the real quality in their automobiles with rollovers, cheating and infringing on a patent and now a floor mat which stuck in an expensive luxury car,the Lexus and caused the death of three people. 

 

     (STUCK ACCELERATOR) Associated Press (AP) reported "Toyota to recall 3.8 M vehicles over floor mats".  The AP story was "that this accident was "a high-speed crash in August in California of a Lexus barreling out of control.  As the vehicle hit speeds exceeding 120 mph, family members made a frantic 911 call and said the accelerator was stuck and they had no brakes and couldn't stop the vehicle."  The National Highway Traffic Safety Administration (NHTSA) said it had received reports of 102 incidents in which the accelerator may have become stuck on the Toyota vehicles involved.

 

     The recall will affect 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS 350.

 

     (ROLLOVER SUITS):  It is uncertain about the course of over 300 rollovers and suits filed by several lawyers.  Some allegations were made of withholding of evidence in the suits.

 

     (PATENT INFRINGEMENT SUIT):  The suit for infringing on a patent in 2005 resulted in having to pay $4.3 million to Paice LLC of McLean, VA for using drive train technologies in the carmaker's Prius, Highlander and Lexus RX400h hybrid models.  Toyota has to pay royalties based on the cars' wholesale price to Paice.  Toyota lost an appeal on the case.  The Bloomberg Printer reported September 4, 2009 that Paice LLC has filed a complaint with the Federal Trade Commission against Toyota and "is going for the jugular by asking for an exclusion clause, and it argues that the new generation of hybrid vehicles infringe on many of the same patents." 

 

     (CASH FOR CLUNKERS):  Toyota Motor Corp, according to the Wall Street Journal story "Clunkers'Lifts Foreign Cars" was "one of the big winners of the Clunkers program, grabbing 19.4% of the market for trade-ins, exceeding its year-to-date market share of 16.3% according to results compiled by the Japanese company, Mazda Motor Corp. 

 

 

 

 

 

     (COMMENT):  Toyota has been in a contest to overtake General Motors in sales.  It has been extolled as the car maker with excellence.  What is included in this paper is something showing exactly what their problems with quality and playing by the rules have been.

(Referring to the patent infringement case in 2004 and this year.)  Perhaps we should clean our glasses before we read more about Toyota so we do not miss the fine print on what is actually happening.

 

 

(NISSAN MOTOR CORP):    Nissan had a similar story to that of Toyota in the early 90's when they could no longer hide their burning minivans which caught on fire in the drive way, while driving, while sitting or just anytime.  There were 146 cases and some people died but the records were sealed in court.  People desperately tried to have restitution for their vans, even to demonstrating before dealerships.  The vans were picked up from the junk yards and flown back to Japan.  Finally, the news leaked out about them and Nissan was forced into a $231 buy back of the vans.

 

     (WORST CAR LIST):  It was during the time that Nissan/Renault CEO Carlos Ghosn was attempting the take over

of General Motors and pointed out that the products and management of the company needed to be better.  There was even a self-suggestion in the press that the company would probably ask Ghosn to take over and run the company.  Unfortunately, at this time Nissan had four models of cars topping the "Worst Car List" in the United States. Fortunately for the U.S. he did not win with his efforts.

 

     (TALF FUNDS FOR NISSAN AND ENERGY DEPARMENT CLEAN FUEL FUNDING):   Nissan was first in line for the TALF funding of $1.37 Billion from the U.S. Federal Reserve.  Nissan intends to raise an additional $3 Billion by way of the program.

 

        Nissan was also first in line at the Department of Energy to receive $1.6 Billion for their clean car advertised at the time in the Financial Times.  The company is working with the U.S. federal Argonne Lab and its Oak Ridge National Lab.   To show the advances in the "Leaf" car Mr. Ghosn, CEO of Nissan/Renault was shown laughing and driving a car in Tokyo with former Prime Minister Kozumi as a passenger.  The implication was the Japanese had developed this, but the U.S. was helping in a major way to finance it.

 

 

 

 

 

 

     (NISSAN RETITLING CARS):     Remember, Nissan is the company which ignored U.S. laws and retitled a fleet of over 50 cars showing they were new in commerce and also rolled back the odometers before putting the cars in interstate commerce. The frauds are major and many and the company has never been held accountable for operating under their own made up law. 

 

     Nissan is quick to take our help with federal and state funds.  The Associated Press (AP) reported in June, 2007 that the Nissan board members were going without their bonus because they had had their first profit drop in seven years.  (It was shortly before that the company was in the "dumpster" over paying for the burning minivans.)

 

 

     (COMMENT):  The Japanese car makers are eager to use American money to help finance their cars while continually pointing a finger at the quality of American cars in their ads and statements.  Japanese car makers feel free to use both State and Federal money for their use.  American taxpayers in just one plant have directly given Nissan $1Billion 96 million dollars.  Their $5,000 tax credit for each employee runs for 25 to 30 years.  The American school children are cheated by the company by paying only 1/3rd of the ad valorem taxes due the schools. 

 

     The tax abatements help subsidize the Japanese cars.

Dr. Mustafa Mohatarem, Chief Economist for GM testified before Congress that "U.S. automobile and parts manufacturers have their own internal problems to address.  Yet it is important to note that American companies, like GM, are doing fine in international markets whereas it is their own domestic markets here in America that huge losses are seen year after year.

 

     (COMMENT):    The tax exemptions and the length of time they run, plus the free ports and the weakened yen policy of Japan to make their companies viable why we have problems in the U.S.  Our American generosity to undercut a necessary industry for the country makes it difficult for a needed American industry to survive.  We are giving up many things which include engineering, research, national security and the extremely valuable machine tool industry with each industry we undercut. 

 

     Japan sent in an import surge of cars while the market was going down according to the economists from Detroit.  There are many ways to cut in to a market.  Particularly if you use a different system other than American laws.

 

     Mothatarem stated it best.  He said, "No industry better exemplified the effects of Japan's imbalanced, mercantilist post-war trade policy than the automotive sector."  He then addressed two ways that Japan was creating distress for American firms (in our country): First, the legacy of Japan's unfair and mercantilist trade policies, and second, the initiation and impact of Japan's sustained currency manipulation.  He said, China may be tomorrow's problem, but today, and for a long time, it's Japan.

 

     Mohatarem urged the committee to understand that Japan is the primary threat to the health of the American automotive sector.  "Let me assure you, when it comes to working to secure the health and viability of American auto jobs and the future well being of this industry, there is nothing more important than to consider the U.S.-Japan relationship"

 

     None of the Japanese car makers are held accountable for ignoring the law. Nissan is an excellent example of this.  The size of our U.S. market is so important that it should be imbedded at the top of ever communiqué on the auto industry.  Today there are one quarter billion vehicles registered in the United States.    

 

     Now, why with a market the size of the American market would the government put up obstacles for their own domestic auto industry to hinder their flourishing, particularly when it is important for the country's national security?  The auomobile industry affects so much of the economy of the United States with 7 out of 10 jobs related to the auto industry.  It is time to stand up and put the American industry and manufacturing first.  If we do not, education, health and the income of families and their dreams suffer.  It is time for the foreign auto industries to be accountable for their actions.  

 

     (COMMENT):    The Commerce Department in its auto group is sharing information gathered from around the world each day with the Japanese car makers.  The American taxpayers pay for this help. The foreign car makers are here because of the size of the market.  If their government wants them here, fine, it is not up to the American government to open up "all the avenues information for the competition for the American industry to the foreign car makers."   The American auto industry is "our" National Defense Industry.  American taxpayers should expect to have "our" government help our industries.

 

 

 

 

 

 

 

     The foreign car makers are neither indigenous to America nor are they American regardless of how long they have done business in the U.S.  Those companies still must comply with the laws of their home country and their is generally a financial arrangement with their parent company.  Because Americans are generous to give the foreign companies tax abatements does not change the nationality nor the intent of the company.  

 

     The actions of the companies against the American auto industry reveal their objectives.  Taking American money to keep the foreign company in business regardless of any donations to American charity does not make the company American.  It is time to recognize the difference and support the American automobile industry to the fullest.  They will help us in time of war and they have.  Do not forget it!!!!

 

 

 

 Mike Biras  mbiras64892@mypacks.net