Toyota Recall: What Next for the Company?

Toyota is suffering its worst crisis in its history. Many of its cars are now being recalled and the main problem is that it has got some serious defects that can become fatal for the drivers. As a result, Toyota will suffer huge financial loss and more than anything, the brand got a very bad hit in its reputation. Toyota was always famous for its reliability and quality but all of a sudden, it has become the victim of its own negligence. I still can not understand why such a big problem happened for the company. They have many workers to look after these kinds of problems. Thousands of Toyota cars are now being recalled.

In USA, some people do not like Toyota because it is a foreign company. They feel happy now that Toyota has been suffering this way. In Japan, many people are angry and they think that US media and even bloggers are just giving too much coverage of the problem of Toyota because it is a Japanese company. I agree with both the sides. I think that Toyota has been targeted too much by the American media and bloggers. On the other hand, I also think that the American journalist and bloggers are right because Toyota has failed in a very bad way.

I am interested to see what happens next for the Toyota and the Auto industry. The condition of General Motors is also not that good. So, I don’t think that GM can take advantage of the current problem of this Japanese auto manufacturer. 

Sony is happy with Apple iPad

It is perhaps surprising to see that Steve Haber, President of Sony’s Digital Reading Division, has expressed his satisfaction to the arrival of Apple iPad tablet. Sony has its own e-book reader and iPad is thought to be a device that would give every e-book reader of every company a run for their money. So, why, Mr. Haber is welcoming iPad?

In fact, he said, "The introduction of another mobile device, which includes digital reading as part of its functionality, is a good thing for the digital book business. Mobile devices with reading capabilities will play a key role in the paradigm shift from analog to digital content. At Sony, we’re focused on devices optimized for digital reading and believe that digital books sales will surpass print sales within five years, if not sooner."

The essence of his statement is that because of iPad, many people would not feel interested about e-book readers and reading digital content will become popular. Naturally, the market will become bigger and Sony will get good profit from the expanding market.

I agree with Mr. Haber because still now, most people are habituated to read books printed on paper not in digital screen. 

Japan goes for second stimulus package to revive the economy

When the economies of many rich countries are gradually coming out of the recession, Japanese economy is still suffering. So, Japanese government has taken an extra ordinary measure to announce second stimulus package in one fiscal year. Japanese fiscal year will finish on March and now, the government is going to inject nearly $80 billion. This is a lot of money but the government is helpless.

Consumer confidence in Japan is not improving at all and this is one of the main worries for Japanese government and the business people. Another problem is that a strong Yen is not helping the country in export. Many small companies are almost becoming extinct and even some big companies have suffered very big blows. So, the government is going to help those companies to survive and this matter is very important because unemployment is exceptionally high in Japanese standard at this moment.

I think that Japan has become very rich and one of the problems that this country is facing at this moment is that people have got habit to luxury. In the past, we have seen that Japanese people are very patriotic and they are capable of doing many sacrifices. So, I think that the government should do some research and try to talk to the people openly about the current economic problem.

Is Apple iPad Price Expensive for Asia?

It is the day of Apple iPad tablet PC and many people are now searching about its price across the world. Well, in most countries of Asia, it is late night and tomorrow, we will get a clearer picture about the reaction of Asian people. I think that it will attract many consumers in Japan and Korea and in the Middle East. China can be a good market too. Well, to go back to the question that I posed in the title of this entry, I think that the price of iPad is a bit expensive for most countries in this continent.

I have already written in another blog that it will not be popular in India as it is too expensive for Indian market. However, I think that China can be a better place as people of China has better per capita income compared to India.

Well, what I understand now is that Apple is mainly focusing on US market and that is understandable. However, it is time that Apple also takes Asian market more seriously.

Electric Cars Dominated at Detroit Auto Show 2010

What if you can not get the required fuel for your vehicle after 10 years or say 20 years? That is the fear roaming around in the global auto industry and among the car enthusiasts. This fear was well reflected in the recent Detroit Auto Show 2010 where automakers brought their environment-friendly hybrid concept cars which would come into the market in the coming years.

Toyota presented its plug-in hybrids and battery electrics models which are expected to be hit the market in 2012. The Japanese auto makers also came up with hydrogen fuel cell vehicle model which is expected to come to the market in 2015. There are reports out in the media that oil demand could surpass supply in the next 20 years and that will be time people would have no other option expect hybrid cars.

Honda Insight gave a good challenge to Toyota’s dominance with Prius in the hybrid car market. Honda is now ready to roll out its 2010 CR-Z Sport Hybrid Coupe car which could make the competition more intense. The new Honda hybrid car focuses on both style and economy.

The good news is that some other big players like Volkswagen and Hyundai are also going to put their mark in electric car market in the near future. Car analysts think that in the next decade hybrid or electric car market would grow significantly and grab a big chunk of the whole auto industry.

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China: 8.7% Economic Growth in 2009

China did not actually achieved double digit growth in 2009 but 8.7% is even more valuable than double digit GDP growth in the year of great recession. In fact, in the fourth quarter of 2009, the GDP growth was 10.7% compared to the same time one year ago. This is good news for not only Chinese economy but also for the whole world. It shows that the stimulus package that the government of China allocated brought some good result.

The high GDP growth means perhaps something extra for the country because there is a strong possibility that China has now the second largest economy in the world. Japanese figures will be announced after a few days and then the official confirmation will happen.

What is the magic solution that China could find in the time of economic recession? What Chinese decision makers did was to shift the focus to domestic consumption. Because of the recession, export suffered but because of domestic consumption the products were sold in home.

For the time being, things look very good. It will be good if China really becomes a consumer based country like USA. However, 2010 will bring new challenge for Chinese economy because the high growth has to b sustained. 

Chinese Economy: Real Estate Sector is Becoming a Major Concern

Chinese economy suffered from global recession but now things are looking better. However, many people have turned to real estate. For many years, the GDP grew at a very high rate compared to the rest of the world. Many people came to the cities from rural areas and found work in factories and naturally when you have some more income then the first thing you look for is a land, house or apartment. Thus, even in the time of recession, the real estate market kept on growing and this continuous growth is turning into the main headache for the economy of the country.

The main problem is perhaps that except the buyers, all the other groups want to keep the growth in the real estate sector intact. Many housing projects are now going on and the developers of the projects don’t want to decrease the price. So, a crash is likely to happen sooner or later. It seems that there is no way out. The government is trying to control the situation but it is a very difficult thing. It is worth mentioning that nearly three decades ago similar thing happened in Japan and the Japanese real estate sector suffered a crushing blow and as a result, the economic growth of the country collapsed and did not recover fully until now.