Author: Nicholas Takahashi
Stellantis recently unveiled its new fully electric compact utility car, the Jeep Avenger, in Japan. Priced at ¥5.8 million ($40,000) and eligible for ¥650,000 in government subsidies, the electric vehicle is entering a market dominated by gasoline and hybrid cars. Despite the slow adoption of EVs in Japan, sales of imported electric vehicles surpassed domestically made ones in 2023. Toyota, a key player in the EV market, has adjusted its sales targets due to market trends. While the Japanese automaker originally aimed to sell 1.5 million battery electric vehicles annually by 2026 and 3.5 million by 2030, it has since…
Toyota is ramping up its share buyback to ¥1.2 trillion ($8.3 billion) due to strong demand in key markets like Japan, Europe, and North America. This move, announced in May, reflects the company’s commitment to reducing strategic shares and electrifying its fleet. Despite a flat stock performance this year, Toyota’s financial results remain robust, with a 17% increase in operating profit for the quarter ending June 30. The increased buyback program, set to run through April 2025, is aligned with the government’s push to unwind cross-held shareholdings among big enterprises. In July, Toyota revealed plans to buy back ¥806.8 billion…
In a recent development, a Toyota subsidiary, Toyota Customizing & Development (TCD), was found to have violated Japan’s laws protecting subcontractors. The Fair Trade Commission (FTC) revealed that TCD had dozens of suppliers store items without paying storage fees and forced 65 suppliers to accept returns on allegedly defective products without proper inspection. This violation comes at a time when the Japanese government is pushing for better treatment of small companies, who often have little bargaining power when dealing with larger clients. The total costs of these violations amounted to ¥54 million ($336,100), which TCD has since reimbursed to its…
Toyota Chairman Akio Toyoda’s Pay Package Increases Amid Shareholder Discontent Despite facing record low shareholder support and a government probe into vehicle certification practices, Toyota Chairman Akio Toyoda’s pay package for the 2023 fiscal year increased by 62% to ¥1.62 billion ($10.2 million). The package included a salary of ¥289 million, bonus payments of ¥324 million, and approximately ¥1 billion in shares, making him the highest-paid Japanese executive for the third consecutive year. However, Toyoda’s compensation still pales in comparison to the earnings of top executives at other global automakers. Stellantis’ Carlos Tavares made $39.5 million in 2023, while General…