Chief of Japan's Softbank in talks with Yahoo about Microsoft takeover bid

By YURI KAGEYAMA
AP Business Writer
AP Photo/Shizuo Kambayashi

TOKYO (AP) -- The president of a Japanese mobile carrier that owns a stake in Yahoo said he is in talks with Yahoo chief Jerry Yang about how to respond to Microsoft's takeover bid.

"The talks have just started," said Masayoshi Son, president of Softbank Corp., at a news conference about earnings Thursday. "We need much more exchange before coming to a final decision."

Last week, Microsoft offered to buy Yahoo Inc. for about $44.6 billion. Softbank owns a 3.9 percent stake in Yahoo of the U.S. and about 40 percent of Yahoo Japan. Yahoo Inc. in turn owns about a third of Yahoo Japan.

Son declined to elaborate on his role in the talks or a possible outcome. But, in response to a reporter's question, he denied he was thinking of offering a counter offer to Microsoft Corp.

"Anything is possible, but I'm not thinking about that at the moment," he said.

Softbank, which has built its Internet empire through acquisitions, bought Vodafone's Japan unit for US$15 billion in 2006.

Son, who boasts friendships not only with Yang but also Microsoft Chairman Bill Gates, noted Yahoo and Softbank have two important assets in common - Yahoo Japan and Chinese search engine Alibaba Group.

Revenue related to Softbank's one-third stake in Alibaba was a major boost to its October-December profit, lifting it by more than sixfold to 46.73 billion yen (US$438.8 million; euro300.1 million) from 7.49 billion yen. Softbank booked a 57 billion yen (US$535.2 million; euro366 million) one-time gain from the listing of affiliate Alibaba.com Ltd. in Hong Kong.

Son stressed Yahoo and Alibaba were still more popular search engines in Asia than Google, underscoring a cultural difference.

If Yahoo rejects Microsoft, some analysts believe the company may have to line up another acquisition offer, or make changes to better satisfy shareholders. Google reportedly has broached a potential partnership with Yahoo, but that alliance might be blocked by antitrust regulators.

In Japan's intensely competitive mobile service market, Softbank's price cuts have been luring subscribers away from Japan's top mobile company, NTT DoCoMo Inc., as well as from No. 2 KDDI Corp.

The defections to Softbank have accelerated since Japan adopted late last year "number portability," allowing people to switch carriers without changing phone numbers.

Softbank beat rivals in monthly subscriber gains for nine straight months, Son said. Softbank, which also offers Internet services, has been aggressive in wooing users with TV ads after it bought British cellular giant Vodafone Group PLC's struggling Japanese operations in 2006.

Symbolic of Softbank's aggressive tactics is a student discount starting this month that offers most services for free.

"We must first increase market share," he told reporters in a news conference broadcast live on the Internet.

Sales in the three months ended Dec. 31 was flat from a year earlier, inching down 1 percent to 694 billion yen (US$6.5 billion; euro4.5 billion) from 702 billion yen, the company said.

Japanese have been ahead of users in other nations in using cell phones to do restaurant searches, exchange e-mail, making electronic payments, read digital novels and download music.

Like offerings from rivals, Softbank's latest handsets show digital TV broadcasts and come with sophisticated digital cameras.

Son said that digital content, such as the news and entertainment, will increasingly be accessed on the Net via mobile phones as connection speeds grow faster. That will provide profit opportunities for Softbank, which he predicted will emerge the world's No. 1 Internet company in a decade or two.

For the first nine months of the fiscal year, Softbank's profit rose dramatically to 93.20 billion yen (US$875.1 million; euro598.5 million) from 21.93 billion yen the same period the previous year. Nine-month sales rose 13 percent to 2.059 trillion yen (US$19.33 billion; euro13.22 billion).

Softbank shares jumped 6.2 percent to 2,130 yen (US$20; euro13.7) in Tokyo. Earnings were announced after trading ended.

G-7 draft statement says nations will work to steady global markets

Mainichi Daily News
Feb 9, 2008

TOKYO (AP) -- The world's leading economies pledged to take appropriate action to secure stability in global markets but stopped short of prescribing specific measures, according to a draft statement Saturday from the Group of Seven wealthy nations.

The draft, obtained by Dow Jones Newswires, said the fundamentals of the world economy are solid, but uncertainty has increased due to a deterioration of the U.S. economy, financial market turmoil, high oil and commodity prices, and heightened inflation expectations.

The document was agreed to on Friday evening, and the final version was due after a G-7 meeting of finance ministers and central bank governors, which began Saturday afternoon. The draft statement left blank the paragraph on exchange rates.

"Going forward, we will continue to watch developments closely and take appropriate actions, individually and collectively, in order to secure stability and growth in our economies," the draft said.

The G-7 had faced calls for increased coordinated action to deal with the financial market turmoil, although the various countries differed on what measures were appropriate. The U.S. has urged other countries to pursue policies to boost domestic demand, while the Europeans have said their economies are resilient and focused more on regulatory coordination.

French Finance Minister Christine Lagarde said earlier in the day the statement would call for beefing up stabilization efforts in the wake of the U.S. credit crisis, which surfaced last year, roiling global markets and fueling fears of a worldwide slowdown.

"There is a great convergence of views on proposals aimed at improving transparency, governance and supervision," she told reporters ahead of the G-7 meeting, while declining to elaborate.

The draft statement took note of the downturn in the global economy, though it did not forecast a recession.

"The world confronts a more challenging and uncertain environment than when we met in last October, though its fundamentals as a whole remain solid," the draft said. "In all our economies, to varying degrees, growth is expected to slow somewhat in the short-term, reflecting wider global economic and financial developments."

Lagarde and senior ministers from Japan and Britain, however, had already thrown cold water on hopes that this weekend's meeting will produce any sweeping policy agreements -- such as a unified move to cut interest rates -- to remedy market instability. The draft statement made a reference to steps that are "appropriate to our domestic circumstances."

After talking with U.S. Treasury Secretary Henry Paulson ahead of the Group of Seven meeting, Lagarde said Paulson made clear the United States had not called for others' stimulus packages, despite comments out of Washington favoring boosting demand.

"We have been surprised by the creativity of the media on this topic. Paulson didn't suggest that other countries should resort to fiscal stimulus," she said.

The remarks were similar to sentiments expressed earlier by other participants, who played down expectations for anything more than a message of unity among the seven industrialized nations comprising the G-7 -- the U.S., Japan, Germany, Britain, France, Italy and Canada.

After a luncheon meeting, the officials met more formally in the afternoon at a Tokyo conference hall. Finance chiefs from China, Russia, South Korea and Indonesia were expected to join the G-7 officials at a dinner later in the day to expand the discussions.

Japan was expected to bring up the idea of a multilateral fund to help poor nations curb global warming. Tokyo has said it will push such climate change efforts at a July meeting in Hokkaido of the Group of Eight, or the G-7 plus Russia.

World financial markets have been battered since the start of the year amid worries about a possible U.S. recession and uncertainty about the full extent of the subprime mortgage crisis that has led to billions of dollars (euros) in losses at major banks.

U.S. efforts to tackle the credit crunch is expected to be a key discussion topic.

"Paulson said he was concerned about the state of the U.S. economy and is worried about the U.S. property market. But he didn't use the word 'recession,"' Lagarde said.

At the gathering, the senior officials will hear a preliminary report from a panel of experts led by Mario Draghi, the head of Italy's central bank, who were asked by the G-7 last fall to study the market turbulence and make recommendations on what should be done.

Paulson will talk about the U.S. economic stimulus plan, said David McCormick, U.S. Treasury Undersecretary for International Affairs. The U.S. Congress passed on Thursday a US$168 billion package of tax rebates for American consumers, business tax write-offs and other measures to shore up the sagging economy.

Fed Chairman Ben Bernanke is also attending the gathering.

The Fed slashed a key U.S. interest rate by 1.25 points to 3 percent late last month, and investors speculate that more cuts may be coming. On Thursday, the Bank of England cut its rate a quarter point to 5.25 percent.

The European Central Bank, which sets policy for the euro-zone, appears to be leaving the door open for a rate cut, but it is unlikely to take as drastic a move as the U.S. because of inflation concerns. The Bank of Japan is even less capable of action with its key rate at 0.5 percent.

Japanese merger poisoned by Chinese dumplings scare

by Kyoko Hasegawa
Feb 6, 2008

(AFP) - One of Japan's leading food companies announced Wednesday it was pulling out of a high-profile merger involving the group that imported Chinese-made dumplings containing pesticide.

The move by Nissin Food Products Co., famous for pioneering instant noodles in the 1950s, is the biggest indication yet of the fallout to business from the health scare shaking Japan.

Thousands of Japanese have complained of illness -- with 10 diagnosed with pesticide poisoning -- after eating frozen meat dumplings which were made at a plant near the Chinese capital Beijing.

A Japanese team said on Wednesday it found no problems on a tour of the factory as a Chinese official visiting Tokyo made an emotional appeal for Japan not to jump to conclusions.

The dumplings were sold by a unit of Japan Tobacco Inc. (JT). The company, looking to branch out amid dwindling tobacco sales, agreed in November to merge its frozen food business with Nissin Food.

But Nissin said its board decided to cancel the deal with the now scandal-tainted tobacco giant.

"When food poisoning takes place, it is a universal rule that foodmakers should immediately take action, such as a recall," Nissin Food president Koki Ando told a news conference.

"But there seems to be a fundamental difference between us and JT about food safety issues," Ando said.

The tobacco company has been denounced for waiting one month to reveal the pesticide discovery, saying it needed time to verify that customers' illnesses were linked to the dumplings.

"From the bottom of my heart, I apologise for causing concerns about food safety," JT president Hiroshi Kimura told a separate news conference.

Under the proposed deal, JT last year bought major frozen food maker Katokichi Co. Ltd in a friendly one billion-dollar takeover. Nissin was then supposed to buy a 49 percent stake in Katokichi from the tobacco company, and then the three firms were to merge frozen-food operations.

China has been hit by a string of scandals over its products, raising fears for the massive manufacturing industry behind the nation's soaring growth.

Li Chunfeng, head of a Chinese delegation that held talks in Tokyo on the issue, denied suggestions by Japan's health minister, Yoichi Masuzoe, that the poisoning was deliberate, saying security was tight at factories.

"Today is the eve of the Lunar New Year in China. More than one billion people will eat dumplings tonight," he said. "I will eat dumplings myself tonight once I get back to Beijing."

"I hope the Japanese media will trust the governments both of Japan and China and report on this with calm," he said, nearly shedding tears.

China is Japan's largest trading partner and its second biggest supplier of imported food.

Japanese police said they found high levels of a pesticide, methamidophos, in dumplings made by Tianyang Food Co. near Beijing.

Another distributor, Japanese Consumers' Co-operative Union, revealed that a second pesticide, dichlorvos, was also found on dumplings made by the Tianyang factory.

But a Japanese team toured the factory and found no abnormalities.

"The factory was clean and well-kept, and we did not find any problems during our tour," said Taiji Harashima, head of the Cabinet Office's Consumer Policy Division, as quoted by Kyodo News.

The market appeared relatively unconcerned about the effects on JT of the Nissin pullout.

JT shares fell 0.87 percent to 572,000 yen, performing better than the benchmark Nikkei-225 index which plummeted 4.70 percent on concerns over the state of the US economy.

Shares in Nissin, however, plunged 7.82 percent to 3,300 yen.

JT has been on a major expansion campaign. Last year it bought British rival Gallaher, behind brands such as Benson and Hedges and Silk Cut, for 19 billion dollars in the biggest-ever foreign acquisition by a Japanese firm.

TechBit: Japan lacks virus laws

By Yuri Kageyama, AP Business Writer
Jan 30, 2008

TOKYO - Police investigating a man for allegedly spreading a computer virus had to arrest him on a copyright infringement charge because Japan lacks laws against malicious computer programs, a police officer said Friday.

Masato Nakatsuji, 24, a graduate student at Osaka Electro-Communication University, is suspected of illegally copying and distributing over the Internet an image from the Japanese animation film "Clannad" showing a woman walking amid falling cherry blossoms.

But Nakatsuji also allegedly embedded the image in the "Harada virus," one of Japan's "Big Three" viruses, a Kyoto police officer said on the customary condition of anonymity.

Police said it was the first arrest in Japan involving making or spreading viruses.

Although computer viruses have wreaked havoc around the world for more than two decades, Japan has been slow to pass legislation to crack down on people who make and spread the potentially destructive programs.

In the latest case, police considered other charges, including damage to property and obstructing business, before deciding that copyright violation charges would hold up best in court, the officer said.

Nakatsuji, who is not suspected of creating the virus, was in police custody and not immediately available for comment. Police said he isn't contesting the charges.

Downloading the Harada virus with the animated image destroyed data and spread on the Internet information stored in computers hit by the virus, according to police.

The virus was also spread through an illegal Japanese file-sharing software program called Winny. The extent of the damage has not yet been disclosed, the Kyoto officer said.

Koji Namikoshi, spokesman for the university where Nakatsuji was researching laser technology, said the university is strengthening instruction on ethical uses of the Internet.

"But the only illegality is copyright," he said. "Something is wrong."

The maximum punishment for copyright infringement is 10 years in prison and fines of 10 million yen, or $93,000.

Japan Tobacco Recalls Pesticide-Contaminated Food

Japan Tobacco Recalls Pesticide-Contaminated Food (Update2)

By Maki Shiraki

Jan. 30 (Bloomberg) -- Japan Tobacco Inc., the nation's biggest cigarette company, recalled some pork products imported from China after saying they were contaminated with pesticides and people who ate them became nauseous.

Japan's Health Ministry earlier said eight people were poisoned after eating frozen dumplings from China. The ministry didn't identify any company associated with the poisoning.

The recalled items included ``gyoza'' dumplings, pork cutlets and other foods containing pork. The Tokyo- based maker of Camel and Mild Seven cigarettes has been expanding its food business as tobacco consumption falls in its home market.

A local police spokesman said five of the victims were members of a family in Ichikawa City, east of Tokyo. The 5-year- old daughter was hospitalized on Jan. 22. Kyodo News reported that 10 people suffered food poisoning from frozen dumplings made in China.

Japan Tobacco President Hiroshi Kimura apologized for the suffering of the victims in a statement distributed by fax.

Shares of the company today fell 2.6 percent to 562,000 yen. Reports of the poisoning came after the close of trading.

To contact the reporter on this story: Maki Shiraki in Tokyo at mshiraki1@bloomberg.net

Japan to certify cuisine but no 'sushi police'

Jan 29, 2008

TOKYO (AFP) - Japan launched a campaign Tuesday to certify authentic Japanese food overseas, but insisted it was only promoting its cuisine rather than setting up a "sushi police."

Promoters unveiled a logo that will identify "real" Japanese restaurants overseas -- a pair of chopsticks holding a cherry petal set in front of a red rising-sun flag.

The effort is led by a non-governmental group of experts set up in July with the blessing of the agriculture ministry, although organisers said it will open offices in various countries to do local appraisals.

The body has so far opened bureaus in Bangkok, Shanghai and Taipei and plans to expand to Amsterdam, London, Los Angeles and Paris by the end of March.

"We are not aiming at something like a sushi police aiming to crack down on inauthentic restaurants," said a member of the Organisation to Promote Japanese Restaurants Abroad, declining to be named.

"Our objective is to promote Japanese food, not eliminate Japanese restaurants."

The campaign when first announced was mocked by some Western media as a futile effort at a time when Japanese food is growing in popularity across the world.

To qualify for certification, applicants are required to use Japanese rice and seasoning along with traditional ingredients. Restaurants must also show knowledge of Japanese recipes and proper hygiene.

Restaurants must also clear at least two of five criteria such as originality, dish arrangement and customer service.

"It's important to share the heart that goes into authentic Japanese food with chefs around the world, but we can't force them," said Yukio Hattori, a board member of the certification body and president of Hattori Nutrition College.

"We also have a history of fusion dishes between Japanese and French, Italian or Chinese food," Hattori, a noted food critic, told AFP.

"I think we should aim to have two wheels -- one is authenticity and the other is the local quality of Japanese food in each country," he said.

The organisation will hold a conference on March 27 and 28 in Tokyo to explain the system, inviting restaurant owners and others from around the world.

Japanese officials and tourists have voiced growing alarm at what they see as vile imitations of their cuisine overseas, fearing that Japanese food will go the way of Chinese cuisine in North America and Europe.

The ubiquitous California roll is a case in point. The vegetarian sushi dish, which replaces sushi with avocado or cucumbers and may include cream cheese, is unrecognisable to most Japanese.

Japan estimates 25,000 restaurants around the world purport to serve Japanese food and that the number is expected to double in a few years amid perceptions that the cuisine is healthy.

Russia and Japan begin forming investment fund

TOKYO, January 11 (Itar-Tass) - Russia and Japan have begun establishing the first joint multipurpose investment fund of three billion dollars, chairman of the board of the Russian-Japanese Business Council Aslan Atabiyev told a press conference on Friday. According to Atabiyev, the aim of the fund is to “attract funds of Japanese investors to finance projects in Russia and Japan.”
“The planned amount of the investment fund for the first year of its activity is three billion dollars, Atabiyev said. “The initial potential of investment projects of the fund amounts to more than 10 billion dollars and embraces all main spheres necessary for running a fully fledged and extremely profitable business.” Among them, the Russian representative singled out “the participation in the construction of facilities in the capital of the Winter Olympic Games-2014 in Sochi, in the construction of cement plants, leasing of building and special equipment, concrete-mixing units, automobile and tractor equipment.”
“The participation in reforming the oil and gas industry and hydropower engineering, including the construction of hydro-accumulating stations, also seems to be promising,” he went on to say. As Atabiyev stressed, concrete projects of Russian and Japanese companies will be presented at a bilateral investment form due to be held in Tokyo on February 14-15.
According to Atabiyev, the fund will be established with the assistance of the national Business Councils, as well as the recently created Japanese committee on support of the holding of the Winter Olympiad 2014 in Sochi.
Chairman of this committee, prominent politician of Japan, former defence minister and deputy of the parliament from the ruling Liberal-Democratic Party Fumio Kyuma has confirmed at a press conference the Japanese side’s readiness to promote the successful holding of the Olympiad in Sochi, as well as interest of the country’s businessmen in implementing large-scale projects in Russia.

Facing finite home market, no-frills stores seek growth abroad

Jan. 10, 2008

By MIWA MURPHY
NEW YORK (Kyodo) During the recession that plagued Japan in the 1990s, ¥100 shops and other no-frills stores became magnets for penny-pinching consumers and despite the lean times reported stunning growth.
The sidewalk bustles in New York's Soho district, which hosts Uniqlo, Muji, H&M and a number of other affordable fashion and interior design stores. KYODO PHOTO
Among notable examples are Daiso-Sangyo Co., Japan's top ¥100 shop chain, Fast Retailing Co., known for its Uniqlo brand clothing, and Ryohin Keikaku Co., which offers Muji brand products that have generated a cult following.
In recent years, these companies touting basic "value for money" products have expanded their operations to the United States and other foreign markets, although they are likely to face tough competition as they increase their overseas presence.
"In Japan, the consumer market is shrinking because of the falling birthrate. Expanding their operations to overseas markets with more purchasing power, such as the United States and China, is a means of survival, along with efforts to internationalize their internal structures," said Shigeharu Miyahira, a professor of economics at Meio University in Okinawa.
"One of the hallmark characteristics of these companies is that they are extremely efficient," he said. "Having grown during the recession, they have thoroughly streamlined their operations."
In mid-November, Ryohin Keikaku opened its first U.S. outlet in New York's Soho district, where Uniqlo opened its global flagship store about a year earlier. The area is already home to an outlet of H&M, the Swedish retailer that swept the world with its "cheap chic" clothing, and a number of other competitors.
Masanobu Furuta, senior managing director at Ryohin Keikaku, recently said the company is planning to open 40 to 50 outlets in the U.S. over a five-year period and is aiming to post annual sales of about ¥10 billion to ¥15 billion.
Muji, whose name stands for "no-name brand," has been increasing its competitive edge by shedding waste in production, packaging and advertising, industry analysts said.
"I'm not saying ads are wasteful, but part of their function is to make things look better than they actually are," Furuta said. "We won't spend as much on ads but will pass on the savings to consumers."
He said the company plans to design and manufacture products in North America in the future because importing products from countries outside the North American Free Trade Agreement is costly.
"Right now, our products are inspired by the Japanese lifestyle, but I believe we can manufacture Muji products that are more suited to the needs of different countries as long as they are consistent with our no-waste philosophy," Furuta said.
These no-frills companies typically produce the bulk of their items in China and other low-wage countries. But rising wages, the relative weakening of the dollar versus the Chinese yuan and high crude oil prices are among the factors likely to impede their overseas expansion.
Takumi Takeda, an associate professor of economics at Meiji University in Tokyo, said Japanese no-frills stores could be successful in the U.S. despite the tough business conditions because there is considerable demand for affordable quality products in cities like New York, which have large income disparities and a constant flow of immigrants.
Takeda, a visiting scholar at Columbia University in New York from 2005 to 2007, said the retailers will do all they can to overcome the difficulties facing them and will meet demand by shifting production bases to lower-wage areas and by developing alternative materials.
Japanese no-frills stores entering the U.S. face tough competition from local rivals that have been around for years, including Old Navy, a Gap Inc.-owned affordable clothing store, and Conway, according to Takeda.
He said Uniqlo and Muji were initially considered groundbreaking in Japan because they were among the first Japanese companies to establish production systems for low-priced quality items.
"This is clearly a far-fetched comparison, but these stores are providing, or trying to provide, a luxury feel and high quality at lower cost, just as Toyota Motor Corp. delivered the qualities of Mercedes-Benz through its Lexus cars," he said. "How long they maintain a reputation like Lexus will be key to their success."
While in Japan both Uniqlo and Muji are no longer seen as fresh, having become ubiquitous, they are still viewed as novel in the United States. In a recent article, The New York Times described Muji as "the merchandise of seven superstores compressed into a bright, boxy Japanese everything mart."
"I think it's really wonderful how simple and basic everything is," said Mitchell Owens, executive editor at Elle Decor magazine, on a recent visit to a Muji store.
"There are so many over-designed things and so many colors in the world. It's nice to be able to choose something that's just simple and easy and that has real integrity in the designs. . . . Very beautiful."

Toyota appears likely to depose GM as world's largest automaker

DETROIT (AP) -- If its estimates hold true, Toyota Motor Corp. will depose General Motors Corp. as the world's largest automaker in 2007.
GM said Thursday it made 9.284 million vehicles worldwide last year, roughly 226,000 fewer than Toyota's 2007 production estimate of 9.51 million.
Toyota expects to have final numbers later in January, but issued the 2007 estimate on Dec. 25 with just six days left in the year.
The real prize, the worldwide auto sales lead, also must still be determined, with both companies to release 2007 global sales figures later this month.
GM Chairman and Chief Executive Rick Wagoner said Thursday in an Internet chat with journalists that the companies are in a race to be the top vehicle maker.
"As I recall, we lead in 13 of the 15 largest markets, but Toyota has a huge lead in Japan," Wagoner said. "We're staying focused on our plan. Great cars, smart marketing, growth in the emerging markets. And hopefully that will keep us on top. If not, we'll come back to work the next day and work even harder."
GM said its production figures included several joint ventures worldwide, including one with Toyota in California and ventures in Russia and China. Toyota's estimates include its Daihatsu small car and Hino truck operations.
GM has seen huge production growth outside of North America, offsetting a decline on its home turf.
In 2002, for example, GM's Asia-Pacific unit produced 307,000 vehicles, but that grew to 2.23 million last year. North American production fell from 5.64 million in 2002 to 4.27 million last year, according to figures posted on the company's Web site.
GM predicted nearly flat production worldwide in the first quarter of 2008 compared with the same period last year, saying it expects to build about 2.29 million vehicles. The Detroit automaker has not given a forecast for the number of vehicles it expects to produce or sell for the full year in 2008.
Toyota said it plans to produce 9.95 million vehicles worldwide next year, up 5 percent from this year -- the same as the projected annual percentage jump for Toyota's global sales.
Last month Toyota said it plans to sell 9.85 million vehicles worldwide in 2008, setting an ambitious target despite worries about a slowing U.S. car market.
GM has been fiercely fighting back, boosting its overseas business, and could still keep the top industry sales spot, which it has held for 76 years.
After the first nine months of this year, Toyota was -- at 7.05 million vehicles sold worldwide -- trailing GM's sales of 7.06 million vehicles for the same period.
GM has the industry record for annual global vehicle sales, with 9.55 million vehicles sold in 1978.
（Mainichi Japan） January 4, 2008

Toyota leapfrogs Ford to become No. 2 in U.S.

Saturday, Jan. 5, 2008

DETROIT (AP) Toyota Motor Corp. overtook Ford Motor Co. to become the No. 2 automaker by U.S. sales in 2007, using new products and relentless strategy to break Ford's 75-year lock on the position.
Toyota sold 2.62 million cars and trucks in 2007, which amounted to 48,226 more than Ford, according to sales figures released Thursday. Toyota's sales were up 3 percent for the year, buoyed by new products like the Toyota Tundra pickup, which saw sales jump 57 percent. Ford's sales fell 12 percent to 2.572 million vehicles.
General Motors Corp. remained the U.S. sales leader, selling 3.82 million vehicles in 2007. But that was down 6 percent from the previous year as customers turned away from some large sedans and sport utility vehicles and GM cut low-profit sales to employees and rental car agencies. GM's car sales fell 8 percent for the year while truck sales were down 4 percent.
Overall, the year was expected to be the worst for the auto industry since 1998 as consumers fretted over high gas prices, falling home prices and the economy.
December also was a tough month for automakers despite a slew of holiday discounts. Toyota's sales slipped 2 percent for the month, while GM's sales were down 4 percent and Ford's fell 9 percent.
Nissan Motor Co.'s December sales were down 2.4 percent, while Honda Motor Co.'s December sales were flat, with a 10 percent increase in car sales canceled out by a 10 percent decline in truck sales.
"This was definitely a challenging year to be in the car business, and 2008 isn't likely to be a piece of cake," said Dick Colliver, executive vice president of American Honda.
Colliver said automakers with more fuel-efficient offerings fared better as gas prices took their toll. Honda's full-year sales were up 2.5 percent, thanks in part to booming sales of the Fit subcompact, while Nissan's shot up 5 percent thanks to strong sales of the Versa subcompact.
Chrysler LLC also had a solid December, with sales up 1 percent thanks to brisk sales of the new Dodge Caravan minivan, which saw a 51 percent jump. Chrysler sales were down 3 percent for the year as falling truck and SUV sales erased gains on the car side.
Ford's car sales plummeted 24 percent for all of 2007 as some models like the Ford Mustang aged and a new Ford Taurus sedan was unable to match the volumes of the older version. Ford also cut rental-car sales by 32 percent over the year. Truck sales were down 5 percent.
Ford historian Bob Kreipke said it was the first time since 1931 that Ford wasn't second behind GM in U.S. sales.
Toyota spokesman Irv Miller said the distinction wasn't important to Toyota.
"We don't pay a lot of attention to rankings such as that," he said. "It's always nice to see the product is recognized and accepted by the consumer. The consumer's going to be the ultimate determining factor in who the winner is."
Toyota got a boost partly from heavier than usual incentive spending as its Toyota Tundra joined the fiercely competitive full-size truck segment. Auto research site Edmunds.com estimated Toyota's incentives jumped from $822 to $1,063 per vehicle between November and December. But Toyota's general manager for U.S. sales, Bob Carter, said Toyota's incentives remain some of the lowest in the industry.
Jim Farley, who recently became Ford's global marketing chief after a career at Toyota, said the new numbers won't change Ford's recovery plan, which includes carefully targeted use of incentives.
"In fact, it actually accelerates the way we're running the business," he said Thursday. "It accentuates the difference between how we're running the business and how our competitors are running the business. It requires us to stick to the plan, no doubt, but it also requires us to really accelerate the development of new products."

Tuna sold for 6 mil. yen at year's 1st auction on Tokyo fish market

Saturday January 5, 2008

(Kyodo) _ Tokyo's Tsukiji fish market held the new year's first auction of tuna early Saturday, with a 276-kilogram bluefin tuna caught off Aomori Prefecture sold for a five-year high of 6.07 million yen amid tightening controls on catches and rising fuel costs for fishing boats.
A Hong Kong-based sushi restaurant chain owner won the bluefin tuna with the highest price in the auction. Its price per kg came to 22,000 yen.
The record-high price was 20.2 million yen, or 100,000 yen per kg, set in 2001 for a 202-kg tuna caught in the same waters off Oma, the northernmost town on Japan's main island.
"I've never heard the highest price in the first auction of a year came from a person in Hong Kong," an auction participant said. The Hong Kong sushi chain has opened a restaurant in Tokyo.
About 2,900 tuna caught at home and abroad were put on sale at the auction. After a bell rang to mark the start of the auction, loud voices announcing settlement prices were heard everywhere.
It is becoming increasingly difficult for Japan, the world's biggest tuna-consuming country, to secure a stable supply of the fish.
The international catch quota for bluefin and southern bluefin tuna has been gradually reduced to preserve tuna resources.
Higher fuel costs following the record-breaking advance in oil prices have forced an increasing number of Japanese fishing boats to discontinue tuna catches.
Tuna demand in other Asian countries, including rapidly growing China, is also rising rapidly.
On the Tsukiji market, prices of tuna caught overseas seas have risen an average 20-30 percent from a year before partly because imports of cultured tuna from Croatia, Spain and other countries have dropped sharply since last fall.

KAGOSHIMA, Japan : Over the new year holidays, quality raw fish like tuna is a much sought-after festive delicacy in Japan. But a slash in the country's fishing quotas due to the shrinking tuna population is driving seafood producers to look at alternative ways to increase supply. A slice of otoro - the fattiest part of the tuna belly - is prized by the Japanese. Fans rave about its melt-in-the-mouth texture. The most expensive tuna is the bluefin, known as the diamond of the sea. Japan consumes some two-thirds of the world's catch. But as bluefin tuna numbers are dwindling, the country's annual fishing quotas have been reduced. Its quota for the southern bluefin tuna has been halved for five years. A United Nations agency warns that if strict measures are not taken to prevent over-fishing, the industry could collapse by 2050. To increase the supply of bluefin tuna, a team from fishing giant Maruha Corporate is seeking to breed the fish from eggs. Its farm is located on the island of Amami Oshima in Kagoshima prefecture. The area is regarded as ideal for bluefin tuna farming because the climate is mild. The lowest is 20 degrees Celsius, even during the winter time, and the highest at 30 degrees Celsius. Breeding bluefin tuna successfully requires not just ideal conditions, but also the latest fish cultivation technology and techniques. "The success rate of breeding blue-fin tuna from roe is between 5 and 10 percent. Raising bluefin tuna from fry yields a success rate of 30-40 percent," said Jun Onodera, manager of Amami Fish Farm. "We're trying to increase our production. The Maruha Group commands a 30-percent share of the domestic market for bluefin tuna. Our volume will go up, but our competitors are expanding too," said Masahiro Yoshitake, Aquaculturing Operations Department, Maruha Corporation. Maruho is Japan's top seafood producer. Three quarters of its sales come from its marine products division. Most of the tuna raised here goes to the Osaka and the Tokyo area. But they have also started to sell to major Asian cities such as Shanghai, Bangkok and Singapore as sushi boom in the region increases in demand. - CNA /ls