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Wed, 26th April 2017

Anirudh Sethi Report

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Archives of “subaru” Tag

Toyota-Suzuki alliance may help both ride out changes

An alliance between Toyota Motor and Suzuki Motor could be a boon to both sides, helping the former gain ground in emerging markets such as India and giving the latter the engineering needed to compete in an increasingly high-tech industry.

Can’t go it alone

 The two automakers said Wednesday they were discussing collaboration on environmental, safety and information technology. 

Although Toyota President Akio Toyoda told a new conference that the idea of an alliance came together in just two business days after Suzuki Chairman Osamu Suzuki got the ball rolling, there is more to the story. Suzuki’s next partner had been the subject of speculation since August 2015, when the Japanese maker of economy cars ended a capital and business relationship with Germany’s Volkswagen over management conflicts.

Though Chairman Suzuki had said publicly that his company would look to remain independent going forward, another senior executive had acknowledged that collaboration was “necessary” in some fields. Even in India, a successful market for Suzuki, environmental regulations are growing tougher, making investment in technology like hybrid drive systems essential. Rising incomes have also stoked demand for higher-end vehicles in such countries.

Finding a big automaker ally was seen as essential for Suzuki to ensure a presence in self-driving cars. While a Toyota or a Volkswagen has the financial strength to counter the challenge posed by Google and other tech giants in this field — Toyota’s annual research and development budget comes to around 1 trillion yen ($9.59 billion) — Suzuki, which spent just 130 billion yen on R&D in the year ended March 31, hardly stands a chance alone.

Making connections

Corporate Japan’s dilemma: plenty of demand, not enough hands.Best Opportunity For Indians

Manpower constraints are affecting a wide variety of Japanese businesses. Even Toyota Motor, typically one of the most popular employers, is being forced to raise its recruitment game. 

     Japan’s top automaker recently held a job fair to hire temporary workers in Aichi Prefecture, its home base in central Japan. Making a pitch to a male candidate, a recruiter said that while the job would require patience and stamina, it would come with a free dorm room as well as a bonus of 100,000 yen ($966).

     The recruiter also said there might be a chance to become a permanent employee. The candidate, though not keen on doing the same task day in and day out, said the high salary was attractive.

     Toyota has been scrambling for extra hands. In April, the company asked a midsize parts supplier in Aichi to urgently dispatch five employees who could work at Toyota or one of its group companies. The component maker rejected the request, since it had no spare workers.

Peter Lynch

Probably you have heard of Peter Lynch. But did you know that in 13 years, from 1977 to
1990, the Fidelity Magellan Fund he managed grew from $20m to a whopping $14b?!
One of his famous buy, Subaru, was already up twentyfold when he bought the stock and he made sevenfold after that.

Quotes from Peter are as follows:
“Go for a business that any idiot can run – because sooner or later, any idiot is probably going to run it.”

“If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them.”

“Investing without research is like playing stud poker and never looking at the cards.”

“Absent a lot of surprises, stocks are relatively predictable over twenty years. As to whether they’re going to be higher or lower in two to three years, you might as well flip a coin to decide.”