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Age of mtumba cars cut to 3yrs
hardwood
#1 Posted : Thursday, January 17, 2019 5:07:13 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Wrong move.


hardwood
#2 Posted : Thursday, January 17, 2019 5:13:41 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.
MugundaMan
#3 Posted : Thursday, January 17, 2019 5:29:47 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Brilliant move. A car is not an asset but an import burden which is near worthless after 20 years or so of a useful life. The only assets in this category are capital goods cars like pick ups, matatus, trucks, excavators, oil tankers, break down vehicles, electricity pole repair vehicles na kadhalika that actually add to GDP. Government should in fact incentivize the import of these by scrapping duty altogether on them.
hardwood
#4 Posted : Thursday, January 17, 2019 5:30:31 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Munya should know that Kenya doesn't manufacture any vehicles. All Toyota Kenya, GM and others do is import the vehicles in pieces put in big wooden boxes. Then they hire mechanics to fasten the bolts of the various parts together to get a complete vehicle. That surely isn't manufacturing. So I don't understand which is this manufacturing sector he wants to protect.
MugundaMan
#5 Posted : Thursday, January 17, 2019 5:42:58 PM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
hardwood wrote:
Munya should know that Kenya doesn't manufacture any vehicles. All Toyota Kenya, GM and others do is import the vehicles in pieces put in big wooden boxes. Then they hire mechanics to fasten the bolts of the various parts together to get a complete vehicle. That surely isn't manufacturing. So I don't understand which is this manufacturing sector he wants to support.


Actually we do.... kinda. smile





hardwood
#6 Posted : Thursday, January 17, 2019 6:36:08 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Govt should ensure that local car prices are in line with global car prices. That way Kenyans will buy new cars. But the current situation is crazy. For instance a 2019 Rav 4 is going for 2.5m in the US but it is 7m in kenya. That 2.5m is what Kenyans are paying for 8yr old Rav 4 mtumba junks from japan. NB a 2019 corolla is 1.8m in the US where incomes are much higher than in Kenya while its 4m in Kenya. Total madness in ke. Seems everything in this world is schemed to be against mwafrika, even his own govt.

https://www.toyota.com/rav4/


hardwood
#7 Posted : Thursday, January 17, 2019 7:50:11 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
A govt should serve the interests of those who elected them. Not coming up with crazy ideas midway after the elections. I think they have eaten so much that they now think everyone can afford to walk to Toyota Kenya and buy an overpriced 4m vehicle. They have eaten so much that they are now vomiting on electorates' shoes. That is why they should be kicked out in 2022.
limanika
#8 Posted : Thursday, January 17, 2019 8:27:52 PM
Rank: Veteran


Joined: 9/21/2011
Posts: 2,032
hardwood wrote:
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.

Let's give them benefit of doubt. We ship too much money out of kenya in the name of cars. Would encourage any effort to keep part of this money in kenya and create jobs right here. Of greater importance is that globally, the automobile industry is ripe for paradigm shift. I wish we could position ourselves to be on the cutting edge of this shift
Angelica _ann
#9 Posted : Thursday, January 17, 2019 8:32:20 PM
Rank: Elder


Joined: 12/7/2012
Posts: 11,908
limanika wrote:
hardwood wrote:
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.

Let's give them benefit of doubt. We ship too much money out of kenya in the name of cars. Would encourage any effort to keep part of this money in kenya and create jobs right here. Of greater importance is that globally, the automobile industry is ripe for paradigm shift. I wish we could position ourselves to be on the cutting edge of this shift


What cars do we assemble or manufacture in Kenya & where are the plants?

I like the way handshake is outing the idiocy level in Jubilee!!!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
limanika
#10 Posted : Thursday, January 17, 2019 8:57:22 PM
Rank: Veteran


Joined: 9/21/2011
Posts: 2,032
Angelica _ann wrote:
limanika wrote:
hardwood wrote:
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.

Let's give them benefit of doubt. We ship too much money out of kenya in the name of cars. Would encourage any effort to keep part of this money in kenya and create jobs right here. Of greater importance is that globally, the automobile industry is ripe for paradigm shift. I wish we could position ourselves to be on the cutting edge of this shift


What cars do we assemble or manufacture in Kenya & where are the plants?

I like the way handshake is outing the idiocy level in Jubilee!!!!!

Ever heard of Mobius? Ever heard of VW assembling cars in Kenya? Even if many of the parts are not made in Kenya, the assembly plants will create some local jobs. Of course Jubilee not good in planning..for instance would not be surprised nobody has worked out 1) how many 'new' cars are imported every year 2) Revenue that govt gets 3) Whether existing plants will meet the demand 4) whether the created jobs will earn govt more revenue.maybe they've worked this out, maybe not.. that's why i said 'let's give them benefit of doubt'. But it's a shame that we still import whole cars over 100 yrs since the first car was made.
Angelica _ann
#11 Posted : Thursday, January 17, 2019 9:29:05 PM
Rank: Elder


Joined: 12/7/2012
Posts: 11,908
limanika wrote:
Angelica _ann wrote:
limanika wrote:
hardwood wrote:
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.

Let's give them benefit of doubt. We ship too much money out of kenya in the name of cars. Would encourage any effort to keep part of this money in kenya and create jobs right here. Of greater importance is that globally, the automobile industry is ripe for paradigm shift. I wish we could position ourselves to be on the cutting edge of this shift


What cars do we assemble or manufacture in Kenya & where are the plants?

I like the way handshake is outing the idiocy level in Jubilee!!!!!

Ever heard of Mobius? Ever heard of VW assembling cars in Kenya? Even if many of the parts are not made in Kenya, the assembly plants will create some local jobs. Of course Jubilee not good in planning..for instance would not be surprised nobody has worked out 1) how many 'new' cars are imported every year 2) Revenue that govt gets 3) Whether existing plants will meet the demand 4) whether the created jobs will earn govt more revenue.maybe they've worked this out, maybe not.. that's why i said 'let's give them benefit of doubt'. But it's a shame that we still import whole cars over 100 yrs since the first car was made.


The 2 examples you have given is child's play compared to the government directive & Kenyans capacity to buy cars. Am old enough to know that once there was a car assembly plant in Thika producing among other makes Uhuru car, what happened?

Is this Jubilee's proposal workable, I say a big no. Let us compare notes once it is implemented!!!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
hardwood
#12 Posted : Thursday, January 17, 2019 10:02:06 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
Angelica _ann wrote:
limanika wrote:
Angelica _ann wrote:
limanika wrote:
hardwood wrote:
Nearly all decent vehicles are 1800cc and above eg Rav4, xtrail, c200, forester, premio, golf etc. Middle class in big trouble. Soon all will be rolling in vitzs.

Let's give them benefit of doubt. We ship too much money out of kenya in the name of cars. Would encourage any effort to keep part of this money in kenya and create jobs right here. Of greater importance is that globally, the automobile industry is ripe for paradigm shift. I wish we could position ourselves to be on the cutting edge of this shift


What cars do we assemble or manufacture in Kenya & where are the plants?

I like the way handshake is outing the idiocy level in Jubilee!!!!!

Ever heard of Mobius? Ever heard of VW assembling cars in Kenya? Even if many of the parts are not made in Kenya, the assembly plants will create some local jobs. Of course Jubilee not good in planning..for instance would not be surprised nobody has worked out 1) how many 'new' cars are imported every year 2) Revenue that govt gets 3) Whether existing plants will meet the demand 4) whether the created jobs will earn govt more revenue.maybe they've worked this out, maybe not.. that's why i said 'let's give them benefit of doubt'. But it's a shame that we still import whole cars over 100 yrs since the first car was made.


The 2 examples you have given is child's play compared to the government directive & Kenyans capacity to buy cars. Am old enough to know that once there was a car assembly plant in Thika producing among other makes Uhuru car, what happened?

Is this Jubilee's proposal workable, I say a big no. Let us compare notes once it is implemented!!!


That local assembly thing is a big scam and a major drain on the economy.

1) they are given major tax breaks by govt meaning they are basically subsidized by the tax payer. And all they do is import the new cars in boxes as parts and then hire some spanner boys to join the parts together.
2) they sell the new cars at double the global prices
3) they dictate the prices of imported vehicles because the govt calculates duty based on the selling price of locally assembled vehicles, the CSRP. That is why an 8yr old corolla costing 400k in japan or UK ends up costing 1.2m in kenya because duty is calculated based on the inflated cost of 4m that toyota kenya sells the corolla locally despite the global price price of a new corolla being 1.3m.

This "economically unsound" scenario has ensured that local assemblers are happy even if they sell a handful of new vehicles per year coz the margins are too high and tax incentives too sweet. In the end Kenya and kenyans end up loosing alot of cash in foreign exchange.
hardwood
#13 Posted : Thursday, January 17, 2019 10:12:55 PM
Rank: Elder


Joined: 7/28/2015
Posts: 9,562
Location: Rodi Kopany, Homa Bay
limanika wrote:
Even if many of the parts are not made in Kenya, the assembly plants will create some local jobs.


Which is better?

1) Toyota kenya imports vehicles from japan as parts and hires 100 people to assemble them into vehicles.
2) Thousands of kenyans import used cars from japan and create thousands of jobs along the whole supply chain?
Njunge
#14 Posted : Thursday, January 17, 2019 10:36:27 PM
Rank: Elder


Joined: 2/7/2007
Posts: 921
hardwood wrote:
Munya should know that Kenya doesn't manufacture any vehicles. All Toyota Kenya, GM and others do is import the vehicles in pieces put in big wooden boxes. Then they hire mechanics to fasten the bolts of the various parts together to get a complete vehicle. That surely isn't manufacturing. So I don't understand which is this manufacturing sector he wants to protect.


Laughing out loudly You description has tickled me.... anywho, they are known as CKDs {Completely Knocked Down). This is quite common. Most vehicle manufacturers opt for parts from different countries and this is largely informed by cost of production. As an example the Audi R8 is assembled in a factory in Neckarsal,Germany. Material for its aluminum body is sourced From Brazil, pressed and formed in USA. Other parts are made in countries as far as India and Australia.... Ni biachara my fren. Not a bad move if you ask mesmile
Njunge
#15 Posted : Thursday, January 17, 2019 10:47:59 PM
Rank: Elder


Joined: 2/7/2007
Posts: 921
@angela.SA does not import used cars. It has worked for them and I can't see a good reason why it should not(but I guess Omtata will be in court screaming discrimination}... Maybe the the fear here would be seeing slyqueens crammed in a vitz... Or Nyakinyuas like you with wigs bobbing from the rooftop of a Mobius as they rush to office....
murchr
#16 Posted : Thursday, January 17, 2019 11:28:49 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
I applaud the move but more need to be done on imports....lets make our own ngothas and boxers. We might eliminate these terrorist just by that one move.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
murchr
#17 Posted : Thursday, January 17, 2019 11:33:40 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
hardwood wrote:
Govt should ensure that local car prices are in line with global car prices. That way Kenyans will buy new cars. But the current situation is crazy. For instance a 2019 Rav 4 is going for 2.5m in the US but it is 7m in kenya. That 2.5m is what Kenyans are paying for 8yr old Rav 4 mtumba junks from japan. NB a 2019 corolla is 1.8m in the US where incomes are much higher than in Kenya while its 4m in Kenya. Total madness in ke. Seems everything in this world is schemed to be against mwafrika, even his own govt.

https://www.toyota.com/rav4/




Those US prices are without the various taxes (sales vat etc)
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
2012
#18 Posted : Friday, January 18, 2019 8:02:01 AM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
hardwood wrote:
Wrong move.




I actually think this is a good move. It will create opportunity for motor vehicle manufacture and assembly in our country. Only sad bit is that only the corrupt thieves will be able to afford gazzlers.

BBI will solve it
:)
MugundaMan
#19 Posted : Friday, January 18, 2019 8:08:36 AM
Rank: Elder


Joined: 1/8/2018
Posts: 2,211
Location: DC (Dustbowl County)
Speaking of creating cars. Heck, forget even cars but hata piki piki or lawnmowers. How come our Kenyan engineers who have been to Harvard, Stanford, IIT, Oxford etc are unable to create even a simple home grown piki piki to match Boxer or a tattered car to match the Mahindra mkebes from India I usually see on the road. Is it laziness? Ujuaji in theory terms but zero ability to translate to practicality? Surely moulding an engine motor is not rocket science for someone who has gone to MIT and studied engineering, so in over 50 years of independence how come we are unable to produce even a home grown black mamba, jameni? Or is it because our engineers are all at bars, chasing slayqueens and discussing Ruto 2022 succession fuaaaaaaa every day?

Fyatu
#20 Posted : Friday, January 18, 2019 8:41:21 AM
Rank: Veteran


Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
hardwood wrote:
Govt should ensure that local car prices are in line with global car prices. That way Kenyans will buy new cars. But the current situation is crazy. For instance a 2019 Rav 4 is going for 2.5m in the US but it is 7m in kenya. That 2.5m is what Kenyans are paying for 8yr old Rav 4 mtumba junks from japan. NB a 2019 corolla is 1.8m in the US where incomes are much higher than in Kenya while its 4m in Kenya. Total madness in ke. Seems everything in this world is schemed to be against mwafrika, even his own govt.

https://www.toyota.com/rav4/






That is where the pain is. Uhuru just pembelezas them when opening those assembly plans with statements such as "My government urges manufacturers to make the prices affordable to Kenyans". The corporates heads and pretty faces in attendance clap their hands but the prices still remain huko juu kwa rooftop. Munya should not be chest thumping on TV but instead should be busy coming up with a legislative bill to force these manufacturers from fleecing Kenyans. Kama hawezi chora policy ya pricing he should let us continue importing jalopies from Japan and stop disturbing long suffering wananchi with kizungu mingi and hollow bravado
Dumb money becomes dumb only when it listens to smart money
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