* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, July 24, 2011, Issue No. 623<br>
<br>+++ INDEX<br><br>- What's New -- Toyota-Tesla Deal Goes Deep<br>- News -- Metropolitan government to go thermal<br>- Candidate Roundup/Vacancies<br>- Upcoming Events <br>- Corrections/Feedback -- Where is Fukushima?<br>
- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>----------- UPGRADE TODAY TO PBXL IP TELEPHONY ------------<br><br>PBXL has the solution for your office. PBXL will purchase <br>
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<br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br><br>+++ WHAT'S NEW<br><br>On July 21st a big question that must have troubled real <br>estate developers in the San Francisco Bay Area for the <br>
last year was answered: "How was it possible for Tesla <br>Motors to buy the shuttered 200-acre New United Motors <br>Manufacturing, Inc. (NUMMI, Toyota's failed j/v with GM) <br>plant in Fremont, complete with buildings, for just US$42m<br>
from Toyota?" They would have been troubled because the <br>prior to the sale, the Alameda County Assessor had the land<br>plus an adjoining 160 acres valued at US$159m, and plant <br>and equipment at US$911m -- yielding a total capital <br>
valuation of US$1.07bn. Basically, the NUMMI plant sale has<br>been one huge capital loss for Toyota...<br><br>Our Take, and it's pure speculation mind you, is that the <br>answer came in the form of an announcement mid-this week <br>
from Tesla that it has inked a 3-year deal to supply Toyota<br>with US$100m of power train components for Toyota's 2012 <br>all-Electric Vehicle (EV) RAV4, which journalists have been<br>favorably road testing. In other words Tesla and Toyota are<br>
now revealing a depth of collaboration that belies the <br>paltry US$50m that Toyota initially invested for 2.9% of <br>Tesla back in May 2010, and which puts the NUMMI land deal <br>into perspective: the two companies are moving much closer <br>
together.<br><br>Actually the rapidly evolving development of the <br>Toyota-Tesla relationship is quite interesting, not only <br>because it shows that Toyota is hedging its bets on EVs, <br>but also because it speaks to the prowess and marketing <br>
capabilities of Tesla's founder and board to leverage a <br>potential dot.com-style bomb into a highly valued IPO in <br>June 2010. The valuation of that IPO, which came in at <br>around US$2.2bn, or US$22.89 per share, created about <br>
US$250m in much needed cash for the company.<br><br>[Continued below...]<br><br>----------------- Would You Write to Eat Out? -------------<br><br>Metropolis' <a href="http://www.metrodining.jp">www.metrodining.jp</a> website is gaining followers<br>
at a prodigious pace, and we need more expertly written <br>food reviews. <br><br>If you can write, and if you eat out a lot anyway, just<br>how many reviews of places you have already been to would<br>you be willing to write, in return for a meal out for two<br>
as payment? <br><br>We're interested to know the answer to that question and <br>invite readers to contact us and share their opinions.<br>Better still, if you would like to be a guinea pig in a<br>new barter payment program we are considering for <br>
Metrodining.jp, then let us know that too.<br><br>Contact us at <a href="mailto:terrie@metropolis.co.jp">terrie@metropolis.co.jp</a> to kick things off.<br>------------------------------------------------------------<br><br>
[...Article continues]<br><br>There have been three elements to this Toyota-Tesla deal <br>which that we find interesting.<br><br>Firstly there is the land deal. One wonders how Toyota will<br>account for the large capital loss, especially since even <br>
the land itself sold for half the going rate and <br>fortuitously gave Tesla a manufacturing plant that it could<br>never build for itself. Perhaps one hint is to be found in <br>a 2009 GM announcement saying that that previous NUMMI <br>
joint partner expected major costs related to environmental<br>cleanup of the site. So by selling the plant on to Tesla, <br>Toyota could say that it was dodging this bullet. Certainly<br>it's a convenient way to pass on an asset to a pal.<br>
<br>Secondly, there is the fact that Toyota's arrival to invest<br>in Tesla last year significantly changed Tesla's chances of<br>a successful IPO. Tesla filed in January 2010 to IPO, but <br>had to file two amendments over succeeding months --<br>
presumably because investors weren't giving the company<br>much love, before landing the Toyota investment and <br>subsequently doing a very successfully IPOing several <br>months later.<br><br>A J.D. Power & Associates Senior Manager said in 2010 that <br>
the Tesla valuation, at about 3x the valuation ratio of <br>traditional car makers such as Nissan, reflected Tesla <br>being viewed as a battery and technology firm rather than <br>a car maker, but nonetheless agreed that the valuation was <br>
probably high. He also added that the loan award from the <br>Department of Energy, along with the Toyota investment, were<br>important in making "investors see Tesla as a safe play". <br>So we can see how important the Toyota investment was --<br>
and the question is: how much leverage has that bought<br>Toyota today?<br><br>Thirdly there is the whole issue of whether or not <br>Toyota got into the Tesla deal because it is trying to <br>atone at some level for the wrath caused over the shutting <br>
down of the NUMMI plant in 2009 and further the way it <br>handled the sticking gas pedal situation in the USA last <br>year. We're not big on conspiracies but they can be <br>entertaining. Go here for an fairly long but well informed <br>
viewpoint of an activist blogger who feels Toyota was on <br>the receiving end of some local US politics. <br><br><a href="http://bit.ly/aFxTei">http://bit.ly/aFxTei</a>.<br><br>Whatever the motives behind the Toyota-Tesla deal, it has <br>
now become a very real relationship and one that will <br>boost the arrival of EVs to the ordinary man-in-the-street.<br>So far only Tesla has really economically solved the <br>Lithium-ion energy-density problem (although Nissan is well<br>
on the way) thanks to the pragmatic solution of using 6,800<br>commercially available 18650 cells (slightly larger than <br>standard AA batteries) and ganging them up in huge arrays. <br>Our understanding is that they have quite strong patents <br>
around this technology and that is worth a 3-5 year head <br>start for whomever has access to such technology -- such as<br>the investors and any sweetheart deals they can extract <br>from Tesla the patent holder.<br><br>
Toyota is no fool in terms of hedging risks, and is <br>probably very concerned that it doesn't let Nissan with its<br>Leaf vehicle get too far ahead of them. If Toyota was to <br>have developed its own battery system, drive train, and the<br>
other components that it is buying from Tesla, it would be <br>spending hundreds of millions of dollars and would still be<br>2-3 years behind the leaders. Furthermore, as we have <br>hinted above, there is probably a lot more to this deal <br>
than meets the eye. Whether Toyota is getting a billion <br>dollars of value out of the EV components and the profit <br>they help generate we don't know, but if not, then it will<br>almost certainly be because they are getting equivalent<br>
but less obvious value out of some other part of the <br>deal.<br><br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br><br>--------- BIOS - Bilingual IT Systems and Support ---------<br>
<br>BiOS full-service IT solutions has a new service.<br><br>Working with our fully licenced temporary dispatch group,<br>we are now able to provide Japan in-country workers<br>for companies not yet registered in Japan.<br>
<br>This innovative service is available for companies needing<br>to hire staff for Japanese customers, but who are unable<br>to commit to the expense and infrastructure of maintaining<br>an office in Japan. We take care of all aspects of the<br>
employment, contracting, and dispatch -- including<br>management of the employee.<br><br>Also, if you're thinking of Cloud office solutions, take a<br>look at Microsoft's new Business Productivity Online<br>Standard Suite. Terrie mentions Exchange Online in TT602,<br>
and we can do the same implementations for you.<br><br>For more information on this and other SI and IT services,<br>in English or Japanese:<br><br>Phone: (03) 4588-2220, Email: <a href="mailto:solutions@biosjp.com">solutions@biosjp.com</a><br>
Web: <a href="http://www.biosjp.com">www.biosjp.com</a><br>-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Metropolitan government to go thermal<br>- Takeda saved from diabetic episode<br>
- Menopause herb fails to make the grade<br>- Did you know this about Edison?<br>- Unexpected trade surplus for April-June quarter<br><br><br><br><br>-> Metropolitan government to go thermal<br><br>Showing echoes of his political abilities, Tokyo <br>
Governor Ishihara has announced that the Metropolitan <br>government will build and operate its own natural <br>gas-powered power plant, capable of producing about 1GW of <br>electricity [Ed: we think Nikkei number of 1MW is wrong -- <br>
JiJi says 1m x 1KW). Ishihara reckoned this would be <br>equivalent to one nuclear reactor and would cost around <br>JPY50bn to build. ***Ed: Hopefully this goes better than <br>his Metro-owned bank did...** (Source: TT commentary from <br>
<a href="http://e.nikkei.com">e.nikkei.com</a>, Jul 23, 2011)<br><br><a href="http://e.nikkei.com/e/fr/tnks/Nni20110723D23JF451.htm">http://e.nikkei.com/e/fr/tnks/Nni20110723D23JF451.htm</a><br><br>-> Takeda saved from diabetic episode<br>
<br>Takeda Pharma may have been saved from a catastrophic hit <br>to its business after French reports that its leading <br>diabetes drug Actos, responsible for 30% of its total <br>sales, may cause bladder cancer. The company has received <br>
permission from the US-based FDA and the European Medicines<br>Agency to continue selling the drug, providing it is sold <br>with a warning to doctors in the product explanation. <br>Previously the company had been threatened with a product <br>
recall. (Source: TT commentary from <a href="http://e.nikkei.com">e.nikkei.com</a>, Jul 23, <br>2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110722D22JFA13.htm">http://e.nikkei.com/e/ac/tnks/Nni20110722D22JFA13.htm</a><br>
<br>-> Menopause herb fails to make the grade<br><br>A herbal preparation called keishi bukuryogan, which is <br>available by prescription in Japan and is popular in <br>treating women suffering hot flushes due to menopause, has <br>
failed to show any attributable medical effects in trials <br>conducted in the USA. The trials were run by researchers at<br>the Abbott Northwestern Hospital in Minneapolis. The <br>preparation consists of a mix of cinnamon bark, peach pit <br>
and several other herbs. (Source: TT commentary from <br><a href="http://reuters.com">reuters.com</a>, Jul 07, 2011)<br><br><a href="http://reut.rs/nToo7P">http://reut.rs/nToo7P</a><br><br>-> Did you know this about Edison?<br>
<br>A short article run on the Cleveland Plain Dealer web site <br>points out that Thomas Edison's first successful light bulb<br>was powered by carbonized bamboo filaments sourced from a <br>village in Kyoto-fu, called Yawata. From this early connection <br>
between Japan and the USA in the 1880's, Edison "mania" is <br>apparently still alive and well in Japan and Japanese make up<br>the largest number of visitors to Edison's boyhood home in <br>Milan, Ohio every year. Furthermore, for the last 26 years, <br>
Yawata has been the sister city of Milan.** (Source: TT <br>commentary from <a href="http://cleveland.com">cleveland.com</a>, Jul 07, 2011)<br><br><a href="http://blog.cleveland.com/metro/2011/07/thomas_edisons_legacy_still_bu.html">http://blog.cleveland.com/metro/2011/07/thomas_edisons_legacy_still_bu.html</a><br>
<br>-> Unexpected trade surplus for April-June quarter<br><br>Market analysts were expecting the knock-on effects of the <br>March 11 disaster to last for some months, but in a <br>demonstration of resilience, Japan posted a surprise trade <br>
surplus in June of JPY70.7bn. To be sure, this was 90% less<br>than the year earlier, but was still quite unexpected. The <br>expectation now is that the recovery will be slow and <br>hampered by power and high yen issues, but should continue.<br>
Most of the June gain was attributed to increases in <br>exports to China and Europe. (Source: TT commentary from <br>afp news on Google, Jun 21, 2011)<br><br><a href="http://bit.ly/oBOW0k">http://bit.ly/oBOW0k</a><br><br>
<br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br>
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-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>
marketing the following positions for customers setting up<br>or expanding in Japan, as well as other employers of<br>bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for an Project Manager with <br>
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communication skills in English and fluent-level <br>communication skills in Japanese will be required.<br><br>Remuneration is JPY7m – JPY11m depending on your experience<br>and skill level.<br><br>** POSITIONS VACANT<br>
<br>- Enterprise Support Mgr, global sw co, JPY8M – JPY11M<br>- Smart Phone Game Developer, global IT co, JPY5M – JPY9M<br>- Web Designer (P/Time), outsourcing co., JPY2.5M – JPY3.5M<br>- MAC Coordinator, global ibank, JPY4M – JPY5M<br>
- Vendor Manager, global insurance co, JPY 8M – JPY11M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>
job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>description and a direct link to the main entry on the BiOS<br>
home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>better, the BiOS Job Mail newsletter is an easy and<br>
convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:kenji.sakota@biosjp.com">kenji.sakota@biosjp.com</a>.<br><br>Interested individuals may e-mail resumes to:<br>
<a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br>
<br>--------------- Start a Company in Japan ------------------<br><br>Entrepreneur's Handbook Seminar 16th of July, 2011<br><br>If you have been considering setting up your own company,<br>find out what it takes to make it successful. Terrie Lloyd,<br>
founder of over 17 start-up companies in Japan, will be <br>giving an English-language seminar and Q and A on<br>starting up a company in Japan.<br><br>This is an ideal opportunity to find out what is involved,<br>and to ask specific questions that are not normally <br>
answered in business books. All materials are in English <br>and are Japan-focused.<br><br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br>
-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>
by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br><br>*** More on tracking food sources...<br><br>=> Reader contribution:<br>
<br>A bit nit picky I guess but Fukushima IS in Tohoku, it is <br>north of Tochigi which is in Kanto. Not sure where you <br>think it is, but you kept referring to Tohoku as north of <br>Fukushima.<br><br>*** You're quite right -- our apologies to readers who may<br>
have been wondering. Thanks for pointing this out.<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 8,903 members as of July 24, 2011<br>(We purge our list regularly.)<br><br>+++ ABOUT US<br>
<br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br><br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>
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