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Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Honda and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.

Could this Isuzu Mysterious be an affordable 90s gem?

The Isuzu Rodeo holds a special place in rad car fans’ hearts, as it was the basis for another beloved off-roader, the original Honda Passport. The five-door Isuzu SUV lasted here for several years before being discontinued in the early 2000s, but the automaker sold funky two-door body styles in other markets, and one of the now-legal imports has made its way to Cars & Bids. Though our version had the somewhat mundane “Rodeo” title, the SUV was known as the “MU” or Mysterious Utility. This Japanese-market version comes with a 2.8-liter turbodiesel and a five-speed manual transmission. This one has around 121,000 miles and looks in decent shape. Interestingly, the two-door MU almost has a Mitsubishi Pajero Evo vibe, with its beefy fender flares and cropped, lifted body. Amazingly, the auctionÂ’s statement that the SUV is barely modified is accurate, as its only upgrades include a new stereo and those funky gold wheels. The Mysterious has drawn several comments, mainly from curious observers asking questions about a vehicle theyÂ’ve never seen. One wondered whether the MysteriousÂ’ top is removable, which unfortunately is not the case. Some versions, including the Isuzu Amigo, which we got, came with a removable soft top. One commenter noted that the tops donÂ’t age well, so the hardtop is likely the best choice for a 31-year-old imported SUV.   Though many JDM vehicles from this era are sometimes exceedingly difficult to import and equally expensive, the Mysterious sits at just $3,500 halfway through its auction. ItÂ’s got all the hallmarks to be a Radwood-ready bargain, too. The bright red paint and gold accents give it just enough flash, and versions of the diesel engine are still in production in China, so it might be somewhat reasonable to find parts. Related Video Isuzu Auctions Used Car Buying SUV