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Japan Today
2 days ago
- Automotive
- Japan Today
Toyota chairman's pay hits record ¥1.9 billion despite scandals
Toyota Motor Corp said Wednesday its chairman received a pay package worth around 1.95 billion yen for fiscal 2024, the largest in the company's history and up 20 percent from the previous year, despite a reduction tied to a series of quality scandals. Akio Toyoda still received record-high compensation for the fourth straight year, reflecting the Japanese automaker's strong performance. "Compensations for the chairman, vice chairman and president were reduced to reflect their responsibility on the issues," Toyota said, referring to the scandals involving the firm and its subsidiaries. President Koji Sato was paid 826 million yen, while former Vice Chairman Shigeru Hayakawa, who resigned on June 12 following an annual shareholders' meeting, received 365 million yen, according to an annual securities report. Companies in Japan are required to disclose information on executives who receive 100 million yen or more in annual compensation. Following the scandals, the automaker also said in its report that it would work to prevent a recurrence. © KYODO
Gulf Today
2 days ago
- Automotive
- Gulf Today
Ishiba laments lack of understanding with Trump
Tim Kelly, Reuters Japanese premier Shigeru Ishiba's bid to get US President Donald Trump to relax tariffs imperiling his country's economy and his political future fell flat this week, underlining the gulf between the allies as more levies are set to kick in. Ishiba travelled to the G7 summit in Canada hoping a direct appeal might get talks back on track after Japanese negotiators struggled to secure respite on a 25% tariff imposed on imported cars, according to two officials with knowledge of the matter. While the sun beamed down as Ishiba and Trump reclined in lounge chairs in the foothills of the Canadian Rockies, Monday's brief encounter did little to alter the grim forecast for Japanese industry girding for broader 24% levies due on July 9. The lack of progress could knock confidence in Ishiba's diplomacy just as he prepares to contest a dicey upper house election next month that some political analysts say could result in his ouster. "Despite our persistent efforts to find common ground through serious discussions, yesterday's meeting with President Trump confirmed that we still have discrepancies in our understanding," Ishiba told reporters on Tuesday before his departure from Canada. Trump earlier told reporters aboard Air Force One that "there was a chance of a deal" but appeared in little mood to cede ground. "Ultimately you have to understand we're just going to send a letter saying this is what you're going to pay otherwise you don't have to do business with us," he said. The most pressing issue for Japan has been the impact of Trump's tariffs on its auto sector, which employs nearly one in 10 of the country's workers and accounts for a fifth of exports. Japan's overall exports fell in May for the first time in eight months, piling pressure on its fragile economy, the world's fourth largest. Toyota Motor Corp, Japan's leading car company, has already flagged that tariffs have likely sliced off 180 billion yen ($1.2 billion) from its profit in April and May alone. Honda has said it expects a 650 billion yen ($4.5 billion) hit to its earnings this year from tariffs in the U.S. and elsewhere, while Mazda Motor declined to issue a full-year profit forecast, citing uncertainty due to tariffs. Publicly, Ishiba's government has said it aims to win total exemption from Trump's auto tariffs, but behind the scenes its negotiators had been trying to convince Washington to knock them down to around 10%, the sources said, requesting anonymity due to the sensitivity of the matter. Trump's trade deal with Britain, where he agreed to allow a quota of cars to be subject to a lower 10% levy has provided somewhat of a template, although Japan is a far larger exporter of cars to the United States. In exchange for relief on the autos sector, Tokyo had pledged to step up purchases of US gas and other items to rebalance a trade deficit that has long irked Trump. But just days before Ishiba was due to arrive in Kananaskis, Canada for the G7 summit, it became clear to Japan's negotiators that Washington was unwilling to budge, said one of the sources. Ishiba likely miscalculated by raising expectation of an agreement with Trump, said Kenji Minemura, a senior researcher at the Canon Institute for Global Studies. He will now have put a trade deal aside and focus on convincing Trump to extend the pause on the broader reciprocal levies, a senior lawmaker close to the premier said. Otherwise, Ishiba faces the prospect of contesting elections next month with the full force of Trump's tariffs in effect. The combined tariffs could shave nearly 1% off Japan's gross domestic product, Mizuho Research & Technologies has estimated. "The fact that nothing was agreed at the summit could raise doubts about the diplomatic skills of the Ishiba administration," said Hiroshi Shiratori, professor of contemporary political analysis at Hosei University. His ruling coalition may struggle to hold on to its majority in the upper house vote, a repeat of the result in the more powerful lower house election in October, which could potentially trigger his ouster, political analysts say. Even if the LDP limps on in minority rule, there is around a 70% chance the party would replace its leader, said Michael Cucek, a political science professor at Temple University in Tokyo.
Yomiuri Shimbun
2 days ago
- Automotive
- Yomiuri Shimbun
Carmakers' Anxiety Grows as U.S. Tariff Talks Stall;Japan Exporters May Have No Choice But to Raise Prices
Yomiuri Shimbun file photo Automobiles produced in Japan for export are lined up at the port of Kawasaki in March. Concerns are mounting among Japanese carmakers that Japan-U.S. tariff negotiations will be prolonged, as the two sides failed to reach an agreement at their summit meeting on Monday. With some new U.S. tariffs, including those on automobiles, already in place, Japanese firms can expect a greater impact the longer negotiations continue. Japanese carmakers and companies in other industries may need to review their pricing strategies for the U.S. market. Subhead: Tariff help desks At a press conference following Tuesday's Cabinet meeting, Economy, Trade and Industry Minister Yoji Muto expressed his intention to implement measures that would mitigate the impact on domestic companies, including small and medium-sized enterprises. 'We are receiving an increasing number of inquiries about cash flow,' he said. 'July 9 is the deadline for the [imposition by the United States of its currently suspended] additional reciprocal tariffs, so I want to understand the situation and discuss this issue with the prime minister.' In April, the government set up tariff help desks at 1,000 locations nationwide. By early June, the desks had received about 3,500 consultations, and inquiries related to cash flow had recently increased, according to sources. The automobile industry is particularly concerned about the impact. In fiscal 2024, automobiles and auto parts accounted for a total export value of ¥7.4 trillion, representing 34.2% of all of Japan's to the United States. Given its broad base, the car industry's impact on the Japanese economy will be significant. Vexing situation The Japanese government is seeking a comprehensive review of U.S. tariffs, and lowering automobile tariffs is its top priority in negotiations. A Japanese government official said, 'We must prepare for a long battle,' as the divide between Japan and the United States continues to persist. A senior executive at a major automaker sighed: 'We had high hopes, so this is disappointing. However, an easy compromise would also be problematic. We remain in a vexing situation.' Toyota Motor Corp. estimates that the increased costs associated with U.S. tariff measures will reduce its operating profit by ¥180 billion in April and May alone. Subaru Corp., whose vehicles are popular in the United States, exports from Japan more than 40% of the cars it sells in the United States. This reliance on exports is expected to reduce its operating profit by up to ¥360 billion for the fiscal year ending March 2026. The longer the negotiations drag on, the more the manufacturers' profits will decrease, which will inevitably affect parts suppliers as well. Possible price hikes Japanese automakers have been selling vehicles in the United States primarily from inventories exported before the tariffs took effect. Now, with more than two months having passed since the tariffs were imposed, their inventories are beginning to dwindle. As tariff costs directly translate to export costs, a senior executive at a major automaker stated that it would be impossible for their company to absorb all tariff costs themselves, indicating that they would eventually have to resort to price increases. Many Japanese automakers have been cautious about raising prices, fearing it could dampen demand for new cars. However, they may soon be forced to reevaluate their pricing strategies. 'If additional tariffs on the automobile industry continue, it could trigger a gradual economic recession,' said Takahide Kiuchi, executive economist at Nomura Research Institute Ltd. Nevertheless, he suggested that a revision of tariff policies could occur if inflation concerns in the United States increased. He advised the government to 'patiently await a revision rather than easily yield to the United States.'
The Mainichi
2 days ago
- Automotive
- The Mainichi
Toyota chairman's pay hits record 1.9 billion yen despite scandals
NAGOYA (Kyodo) -- Toyota Motor Corp. said Wednesday its chairman received a pay package worth around 1.95 billion yen ($13.45 million) for fiscal 2024, the largest in the company's history and up 20 percent from the previous year, despite a reduction tied to a series of quality scandals. Akio Toyoda still received record-high compensation for the fourth straight year, reflecting the Japanese automaker's strong performance. "Compensations for the chairman, vice chairman and president were reduced to reflect their responsibility on the issues," Toyota said, referring to the scandals involving the firm and its subsidiaries. President Koji Sato was paid 826 million yen, while former Vice Chairman Shigeru Hayakawa, who resigned on June 12 following an annual shareholders' meeting, received 365 million yen, according to an annual securities report. Companies in Japan are required to disclose information on executives who receive 100 million yen or more in annual compensation. Following the scandals, the automaker also said in its report that it would work to prevent a recurrence.
2 days ago
- Automotive
Toyota Chairman Akio Toyoda Paid 1.9 B. Yen in FY 2024
News from Japan Economy Jun 18, 2025 21:17 (JST) Nagoya, June 18 (Jiji Press)--Toyota Motor Corp. Chairman Akio Toyoda's executive compensation totaled 1,949 million yen in fiscal 2024, the highest ever for a Toyota executive, according to the automaker's securities report published Wednesday. Toyoda's annual pay grew by around 20 pct from 1,622 million yen the previous year. President Koji Sato's pay rose to 826 million yen from 623 million yen. The company said that it increased the chairman's pay as a result of discussions on compensation levels that align with his roles and responsibilities. In the year that ended this March, Toyota's consolidated sales reached a record high, but its operating and net profits both shrank for the first time in two years, due in part to a testing fraud scandal at subsidiary Hino Motors Ltd. END [Copyright The Jiji Press, Ltd.] Jiji Press
