Apr 26
Honda’s Profit drops 86%
Part of the drop is a provision they made for a possible tax settlement - they appear to be avoiding taxes on income from China!
Where there is smoke there is fire - how much would you bet that they are probably avoiding taxes in Canada too! All related to higher prices charged in Canada versus the U.S. for the same product. (transfer pricing/costs) Wake-up Revenue Canada!
April 28th, 2008 at 11:50 am
A ridiculous pricing strategy in Canada based on recent currency issues and income tax evasion are 2 wildly different things.
I dislike Honda, but too many of these kinds of posts will relegate your site on par with tin foil hat wearing conspiracy theorists who throw out baseless theories. you sweep the effect of their increased incentives and the yen under the rug but those are major factors in profits dropping as well.
I can respect what you guys are trying to do but sticking to the facts and not speculating on institutionalized law breaking is probably a better strategy.
April 28th, 2008 at 4:25 pm
I am not sure I agree. The pricing differences are due to Honda not reacting to currency changes as far back as 2004/2005 when the loonie started to rise. Especially when they know the cars in each market are pretty well identical. The possible tax issue involves transfer pricing between subsiduaries. Both have many things in common, one being PRICING! Another one is ethics and as well good business practices, which, if you look at Honda’s record, and what they are doing to Canadians, … high prices, no warranty, no recall letters…etc… leaves something to be desired.
Look at Toyota. compare they way each handles Canadians wanting to purchase cars in the U.S.
April 28th, 2008 at 5:07 pm
In today’s G&M, it says that Honda Canada changed its CEO. I think it’s about time. Honda has a very good car and should be right up there with Toyota - however I’m not surprised to see them trailing behind with the way they treat their clients.
Here’s a new CWB financial equation for 2008
No recall letters + no warranty coverage = less sales - less CEO.
April 29th, 2008 at 10:11 am
Honda/Transport Canada/RIV;
In view of some of the decisions that were lately made by the Honda executive, it is my contention that they may be intellectually challenged.
This particular trait may well qualify them for a position with Transport Canada or RIV.
It is, however, difficult to determine if they have sunk to that depth as yet.