Tesla isn't the only automobile manufacturer to have recalled multiple vehicles over the years - and that is a good thing. AP
Tesla isn't the only automobile manufacturer to have recalled multiple vehicles over the years - and that is a good thing. AP
Tesla isn't the only automobile manufacturer to have recalled multiple vehicles over the years - and that is a good thing. AP
Tesla isn't the only automobile manufacturer to have recalled multiple vehicles over the years - and that is a good thing. AP


If car recalls raise your eyebrows, remember Boeing's breakdown


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June 21, 2024

You don’t have to wait long for another major car brand to announce a recall of one of its models for safety reasons. These notices appear to happen with such frequency that you might conclude there is some form of contagion at work within the car world.

There is statistical evidence to suggest that instances of recalls have increased over time and, conversely, that we are also more aware of their existence than ever before because of the amplifying nature of our digital world, with recall notices getting trafficked and commented upon on social media, as well as being reported in traditional media. Both things can be true, especially now that manufacturers operate in an era where quality and customer experience have become so important.

The idea of a “Friday car” – the derogatory term that was once used to describe what customers believed were defective cars built in haste as workers rushed out of factories for the start of the weekend – is a relic from the less automated past.

It is also true, however, that we are living in a peak recall era, with more problems being identified on what are, in theory at least, cars manufactured to a higher standard than ever before.

In January, Tesla made global headlines over the recall of more than 1.6 million vehicles in China to fix automatic driver assistance steering and door latch controls. The same manufacturer recalled multiple vehicles in the US last year.

One recent advertising notice published in The National requested the recall of about 2,000 Honda cars registered in the UAE because of “improper manufacturing of stamped metal parts inside the front seat belt buckle”.

Customer reactions to present-day recalls tend to exhibit a range of emotions from a shrug of the shoulders to outright indignation

Last year, Ford’s Territory SUV was recalled in small quantities in the UAE for inspection of the welding between the steering column bracket and the cross car beam. In 2022, General Motors recalled 6,000 SUVs in this country to check the fitting of seat belts in the third row of seats. More than 1,000 Jeep SUVs were ordered back to UAE dealers to check the marque’s emergency alert system.

The list could go on and almost every manufacturer is likely to recall at least some of its vehicles.

Naturally, the news of the major Tesla recalls will have travelled farther than some others because of the number of owners they affected, as well as other contributory factors, such as the high-profile nature of the firm’s CEO, Elon Musk.

Similarly, people are likely to remember historic large-scale recalls by Ford and Toyota from decades ago because they involved so many vehicles and that recalls were not perceived as being commonplace in years gone by.

Customer reactions to present-day recalls tend to exhibit a range of emotions from a shrug of the shoulders to outright indignation, with owners seeking to make sense of such an intervention by using it to confirm their own biases about a brand, for better or worse.

Recalls are, inevitably, a source of hassle, triggering an often-unwanted trip to the dealer.

Some customers will also worry about the potential damage that these recalls may have on market perceptions or resale values. Investors will speculate about what a mass recall will do to that manufacturer’s share price. Negative sentiments tend to be quick to coalesce around a brand, even though recalls are unlikely to have an instant financial cost to the customer.

There is another way of looking at this issue, however.

The existence of a widespread recall culture in the car industry may be positive, demonstrating that in-country regulatory frameworks are strong and that car makers are more willing to address failure and defects than previously, even if a lot of that process may be driven by compliance rather than curiosity.

A placard with photos of those killed on Ethiopian Airlines Flight 302 is held up as Boeing's CEO, Dave Calhoun, testifies before the US Senate in Washington this week. Reuters
A placard with photos of those killed on Ethiopian Airlines Flight 302 is held up as Boeing's CEO, Dave Calhoun, testifies before the US Senate in Washington this week. Reuters

Now consider the recent convulsions experienced in the aviation industry by Boeing.

The company has been accused of overlooking safety concerns after two fatal 737 Max crashes. This week its outgoing CEO, Dave Calhoun, apologised for the organisation’s failures at a US Senate hearing that was described as a “moment of reckoning” for the firm and its broader culture. Relatives of the deceased are demanding Boeing is fined billions of dollars.

The aviation sector’s historical approach to accidents, as well as its regulatory use of black boxes – whereby every problem is analysed and faults scrutinised and eradicated – has traditionally been the envy of other industries. This approach combined high levels of oversight with a culture of learning and improvement.

Boeing’s recent problems, compounded by the admission of the Federal Aviation Authority that it was too “hands-off” in the aftermath of the emergency on-board the Alaska Airlines Boeing 737 Max 9 flight earlier this year, show how the certainties of the past can be swiftly unwound.

When viewed in that context, although many will fret about a recall notice for their car, the fact that it has been triggered may indicate greater transparency within the industry and a broader willingness to tackle defects in the interests of safety. The alternative is to sweep problems under the carpet, and no one would advocate that as decent policy prescription.

Some customers will also ignore recall notices or wait for months until the next scheduled trip to the dealer. Compliance is painful at times, but is necessary, too.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

COMPANY%20PROFILE
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FA Cup semi-finals

Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)

Matches on Bein Sports

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Astra%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202022%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EAbdallah%20Abu%20Sheikh%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20technology%20investment%20and%20development%3Cbr%3E%3Cstrong%3EFunding%20size%3A%3C%2Fstrong%3E%20%24500m%3C%2Fp%3E%0A
The specs: 2018 Opel Mokka X

Price, as tested: Dh84,000

Engine: 1.4L, four-cylinder turbo

Transmission: Six-speed auto

Power: 142hp at 4,900rpm

Torque: 200Nm at 1,850rpm

Fuel economy, combined: 6.5L / 100km

COMPANY%20PROFILE
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Profile of Tamatem

Date started: March 2013

Founder: Hussam Hammo

Based: Amman, Jordan

Employees: 55

Funding: $6m

Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media

The biog

Title: General Practitioner with a speciality in cardiology

Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India

Education: Medical degree from the Government Medical College in Nagpur

How it all began: opened his first clinic in Ajman in 1993

Family: a 90-year-old mother, wife and two daughters

Remembers a time when medicines from India were purchased per kilo

Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool   

 Best Coach: Jurgen Klopp (Liverpool)  

 Best Goalkeeper: Alisson Becker

 Best Men’s Player: Cristiano Ronaldo

 Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

 Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women's Player:  Lucy Bronze

Best Young Arab Player: Achraf Hakimi

 Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

 Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

 Player Career Award: Miralem Pjanic and Ryan Giggs

Dubai Bling season three

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Rating: 1/5

UAE currency: the story behind the money in your pockets
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Updated: June 21, 2024, 5:30 AM