steadyaku47 comment : Following article was in theSundaily. The italics in blue are my comments.
Toyota: Car prices will reduce after GST
Posted on 24 March 2015 - 05:37am
SHAH ALAM: UMW Toyota Motor Sdn Bhd, which aims to sell 100,000 units of vehicles this year, expects car prices to reduce marginally between 0.5% and 1.3% after the implementation of the Goods and Services Tax (GST).
Tell me how is this possible? Once the GST kicks in the government expects to start collecting money from the sale of Toyota cars. Where is that money going to come from?
- From the manufacturer?
- From the ddistributors?
- From the customers?
Of the three, only the customer is out of the "I scratch your back you scratch mine" loop so as always they are the one who gets shafted up their arse for the GST extras.
"As far as UMW is concerned, whatever savings we get from GST will be transferred back to the consumer and I reckon that the price of vehicles will reduce," its president Datuk Ismet Suki told reporters at the Toyota Camry Hybrid Line-Off Ceremony yesterday.
However, he noted that the reduction in prices varies from company to company, depending on the business formula and other factors.
Really? UMW will transfer back to the consumer any savings UMW gets from GST? What savings? The government is going to forgo what ever tax they now imposed on Toyota cars in favor of getting less from the implementation of the GST? Since when has this BN government ever done this? And that "depending on the business formula and other factors" remarks covers a multitude of sins that can be blamed for any price increase. Bottom line that will be blamed for the price increase that will come in with the GST!
On whether car prices would increase due to the volatile currency and softening market, Ismet said it would depend on market forces, for example, it cannot increase prices when demand is not there.
Woi Ismet you do not need to be a rocket scientist to figure that out...!
"I cannot say that there will be substantial impact but of course there will be an impact. We do not know where the market or foreign exchange trend is going to be. If the time comes and we need to do some profit improvement, cost reduction activities, we will do it but at this point in time, it is difficult to say what is the impact," he said.
Right! His "it is difficult to say what is the impact" explains everything. That is double speak for "profits consideration overrides any cost reduction activities!"
Commenting on the incentives for hybrid vehicles that will expire at the end of 2015, he said prices will definitely be affected without the current exemptions.
"We will have to continue selling this car and we understand the situation. Of course, without the exemption, definitely the impact will be there as far as the price is concerned but we will be working with the government closely. I'm sure the government understands the industry requirement," he added.
Note the word "exemption" and the phrase "working with the government closely" - it means the "I scratch your back you scratch mine" scenario is alive and well between them and the government...nudge nudge, wink wink say no more!
He said the group is in close contact with Ministry of International Trade and Industry and Malaysia Automotive Institute, and is confident that things will be worked out.
This means that MITI and MAI are in the pockets of the "group" lah...that is why they are "confident" that things will be worked out!