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Why Japan's government is looking to curb its adorable kei car market

Each region around the world has its stereotypical vehicle. The US has the pickup and Europe the five-door hatchback; but in Japan, the kei car reigns supreme. These tiny cars are limited to just 660cc of displacement but they've also come with lower taxes to make them more affordable. To make of the most of their small size, they've often had quite boxy styling like the Honda N-One shown above, and because they're Japanese, they've often had quirky names like the Nissan Dayz Roox. However, if the Japanese government has its way, the future popularity of these little guys might be in jeopardy. The problem facing them is that Japan is an island both literally and figuratively. After World War II, the Japanese government created the class as a way to make car ownership more accessible. The tiny engines generally meant better fuel economy to deal with the nation's expensive gas, and the tax benefits also helped. It's made the segment hugely popular even today, with kei cars making up roughly 40 percent of the nation's new cars sales last year, according to The New York Times. The downside is that these models are almost never exported because they aren't as attractive to buyers elsewhere (if indeed they even meet overseas regulations). So if an automaker ends up with a popular kei model, it can't really market it elsewhere. The government now sees that as a threat to the domestic auto industry. It believes that every yen invested into kei development is wasted, and the production takes up needed capacity at auto factories. The state would much rather automakers create exportable models. To do this, it's trying to make the little cars less attractive to buy, and thus, less attractive to build. The authorities recently increased taxes on kei cars by 50 percent to narrow the difference between standard cars, according to the NYT. If kei cars do lose popularity, it could open the market up to greater competition from foreign automakers. Several companies complained about the little cars stranglehold on the Japanese market last year, but since then, imported car sales there have shown some growth thanks to the improving economy. Featured Gallery 2013 Honda N-One View 20 Photos News Source: The New York TimesImage Credit: Honda Government/Legal Honda Nissan JDM kei kei car

Honda spending $13.8 million on hydrogen infrastructure with FirstElement

Honda is partnering with FirstElement Fuel to increase the number of hydrogen refueling stations in California. The two have signed a letter of intent to provide $13.8 of financial assistance that, with some state money, could let FirstElement build "at least 12 stations." This is the second OEM that FirstElement is working with to install H2 stations in California. It signed a deal worth an unspecified amount with Toyota to help build 19 stations. State officials in California have said they are willing to spend $100 million to $200 million to build 100 hydrogen stations in the next few years. Honda says that FirstElement could build "at least 31" or them thanks to automaker and government investment. At some point after March 2016, when its new fuel cell car will go on sale in Japan, Honda will start selling the production version of the FCEV in the US. Honda hasn't disclosed a price, but the fuel cell stack has a power density of 3.1kW/L and a range of 300 miles, combined with a refueling time of three to five minutes. The vehicle is Honda's next step to its target of a 30-percent reduction (based on 2000 levels) in CO2 emissions by 2020 from its US vehicles. Earlier this year, FirstElement said that it expects hydrogen stations to become profitable in about five years. Honda Supporting Growth of California Hydrogen Network with Financial Support to FirstElement Fuel Nov 19, 2014 - TORRANCE, Calif. Honda contribution of $13.8 million will further expand and accelerate the network of public hydrogen refueling stations Funding could enable FirstElement to add at least 12 stations to its California hydrogen network Seeking to expand California's public hydrogen refueling station network as a means to support the wider introduction of fuel-cell vehicles, Honda will provide $13.8 million in financial assistance to FirstElement Fuel to build additional hydrogen refueling stations around the state. Additional state grants, combined with the Honda financing, could enable FirstElement to add at least 12 stations to its California hydrogen network. "FirstElement Fuel is providing a vital piece of what is needed for a successful launch of fuel-cell vehicles," said Steven Center, vice president of Honda's Environmental Business Development Office.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.