Japanese manufactures pay local, state and federal sales taxes, as nothing
can be done to avoid them. And they are stuck paying taxes on their
buildings and real estate holdings plus any 'employee' taxes (is. social
services, etc.)..
As for paying outrageous prices on imported parts in order to escape
American income taxes, that makes no sense. Charging more for imported
Japanese parts inflates the profits of the Japanese parent.which results in
paying more Japanese income taxes which are higher than American.
Also, the American subsidiaries pay dividends to the Japanese parent which
generally lowers taxes payable in North America. So price gouging really
makes no sense.
Besides, Toyota's own financial reports, for example, show Toyota's North
American operations with a US $2.2 billion profit (before taxes) for the
6-month period ending September 30, 2005. The Japanese market produced a
net income of US $3.2 billion (before taxes) for the same period. So the
Japanese firms are paying their fair share of income taxes.
Where do people come up with these ideas?
Bill
Vancouver, BC
----- Original Message -----
From: "David Homstad" <dhomstad@xxxxxxxxxxx>
To: <L-FORWARDLOOK@xxxxxxxxxxxxx>
Sent: Saturday, February 04, 2006 1:06 AM
Subject: Re: [FWDLK] 1958 Dodge Production
> This subject of Imports really is one of my pet peeves. The US has a great
> trade deficit, which is primarily due to 2 issues. The lower cost of labor
> is one, but that is nothing we can do much about. The other is what I
> consider unfair trade practices with most other countries. The US
generally
> has low or no tariffs on imports, when compared to other countries. Ever
try
> to import a US car into Japan? Their tariffs are like 50 or 100%! My
> suggestion is that the US should have a law that imposes the same tariff
on
> other countries goods that they impose on ours. The other country sets the
> tariff. We just use their number. If Japan's tariff is 50% on US cars,
then
> ours is 50% on Japanese cars. If US goods were available with lower
tariffs,
> they would be cheaper and sell better, lower the trade deficit and
increase
> jobs in the US.
>
> Another issue is corporate income taxes. Everybody thinks that since the
> Japanese build cars in the US, they pay corporate taxes here like
everybody
> else. They pay little or no taxes. They simply buy a few car parts from
> Japan at many times their real value, say a transmission at $5000. All the
> profit goes to Japan and the US based division makes no profit, and thus
> pays no taxes. The real reason Japan builds cars here is that the cost of
> labor and shipping from Japan is actually higher than the cost of building
> cars here. Notice that they always build their plants in low labor cost
> areas of the country where the UAW union is non-existent?
>
> Dave Homstad
> 56 Dodge D500
>
> -----Original Message-----
> From: Forward Look Mopar Discussion List
> [mailto:L-FORWARDLOOK@xxxxxxxxxxxxx]On Behalf Of Bill Watson
> Sent: Friday, February 03, 2006 8:30 AM
> To: L-FORWARDLOOK@xxxxxxxxxxxxx
> Subject: Re: [FWDLK] 1958 Dodge Production
>
> You are right about CKD, but do not understand the term "dumping".
> "Dumping" is where a country exports goods to other markets at prices
lower
> than sold on the home market. And, no, you cannot "dump" product in the
> United States as the American government does go after any country fhey
> perceive as "dumping" goods, real or imagined. The "imagined" dumping
> arises when the American government decides to support an industry that is
> having difficulty keeping its head above water - the steel industry, for
> example.
>
> The United States of America most certainly does have import duties on
> imported vehicles, which is why Honda, Toyota, Nissan, etc. have opened
> assembly plants in the U.S. For the more popular models, it is more
> economical to assemble vehicles in the U.S. with parts from American
> suppliers along with some imported parts than to get nailed with import
> tariffs on the whole vehicle. So the United States market is not so
> different from Australia, etc. except that the import duties are not as
> high.
>
> The United States of America is the only country I know of that has a
> special VIN digit to denote vehicles assembled in the United States with
> mostly imported parts - "4". The first digit on the VIN adopted for the
> 1981 models year for cars sold in North America denotes the country of
> origin., When Diamond-Star first started building cars for Mitsubishi and
> Chrysler they had to use "4" as the first digit of the VIN as they used
more
> imported parts than American. ("1" is for the United States, "2" for
> Canada, "3" for Mexico, "6" for Australia, "9" for Brazil while letters
are
> used for European and Asian countries.)
>
> The British assembly plant at Kew assembled vehicles using imported
bodies,
> chassis, drivetrain, glass, etc. and used British suppliers for its
12-volt
> electrical systems, leather interiors and other bits. British auto
> manufacturers were really into leather back then. And during the 1930's
> Chrysler Great Britain had a unique serial number for each vehicle they
> built, along with the American or Canadian serial number.
>
> The Canadian plant was the first foreign plant to get away from CKD
> production (actually started back in the Maxwell days). Australia was
next
> in 1957 with the Chrysler Royal but Mexico, South Africa, and South
America
> did not get away from CKD production and into true local production until
> the late 1960's.
>
> British auto manufacturers also got into CKD manufacturing with foreign
> licencees - the first Datsun in 1932 was based on the Austin 7, as was the
> BMW Dixie. The first Datsun cars sold in North America in the early
1960's,
> the Bluebird, clearly showed their Austin heritage in the engine
> compartment.and body styling. Isuzu started building Hillman Minx cars in
> Japan in the 1950's and many Hillman owners look to more moden Isuzu
engines
> and transmissions for their cars as they bolt in with very little
> modification. Mitrsubishi built the Henry J car and the Willys Jeep for
> Asian markets while Hino built the Renault 4CV in the 1950's and 1960's.
> The first Nissan, by the way, was introduced in late 1937 using the
tooling
> for the Graham Crusader purchased from Graham-Paige.
>
> By the way when bodies in CKD package are shipped to a plant that does the
> final paint coat, the bodies are referred to as "body in white". As CKD
> shipments are usually done by ship, steel parts cannot be shpped
unprotected
> from the elements. Thus they are painted white before shipping to protect
> the metal against the salt air during transport.
>
> Bill
> Vancouver, BC
>
>
> ----- Original Message -----
> From: Marv Raguse
> To: L-FORWARDLOOK@xxxxxxxxxxxxx
> Sent: Friday, February 03, 2006 4:16 AM
> Subject: Re: [FWDLK] 1958 Dodge Production
>
>
> In a message dated 2/3/2006 3:28:40 AM Eastern Standard Time,
> esierraadj@xxxxxxxxx writes:
> How did all the materials and componentry, for the Belgium-made cars GET
> to the Belgium assembly plant?
>
> Were there 'duplicate' fabrication facilities, in Europe, or, in
> essence, were un-assembled cars sent there, to be assembled?
> CKD refers to "Completely Knocked Down" vehicle. Parts are stacked and
> shipped in boxes perhaps as many as 15 to 20 sets of parts in each box.
Now
> it may take 10 or more boxes to complete the vehicles but that is how they
> go to the place of assembly. At the assembly facility the boxes would/will
> be opened and parts stacked along the line. Frequently some parts are
sent
> in assembly alreadyif it makes logistical sense and the import rules
allow.
> You can have "Partial Knock Down" also. Local tariff requirements often
> dictate. Only the good ole US is an open market where anyone can dump.
Some
> tariffs are 50% and more. Imagine if an imported Toyota cost that much
more
> over here. Or we manadated local content,not NAFTA. How many would they
> sell? Chrysler has, from time to time, CKD'd all around the world.
> Recently like Thailand for example. Chrysler CKD'd Jeeps there. Latin
> America for trucks and Jeeps. Alot of content goes to Graz, Austria for
> Jeeps and Voyager Minivans. Haven't assembled in Belgium or Kew GB in
many
> years..Also many countries specify how much content must be local and how
> much assembly must be local.
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