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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

Recharge Wrap-up: Minnesota first to require biodiesel, maglev in Israel, Toyota FCV in Aspen

A new Minnesota law that requires biodiesel blends goes into effect in just a few days, says KELO. Diesel drivers in Minnesota will be pumping soybeans into their tank beginning July 1. Every year, diesel will be sold as a B10 blend (ten percent biofuel) from April through August, and will scale back to a cold-hardy B5 blend from September through March. The biofuel largely comes from soybean crops grown within Minnesota, and the biodiesel industry pumps more than $900 million into the state economy every year. According to the National Biodiesel Board, using the B10 and B5 blends will reduce greenhouse gas emissions by 1,342,000,000 pounds every year. Minnesota is the first state to require diesel to be sold as a biofuel blend. In Japan, Isuzu Motors and Japanese biotech venture Euglena are teaming up to create biodiesel using algae, according to Bloomberg Businessweek. The goal is to create a new type of fuel that doesn't need to be mixed with light oil to be used in engines. "As long as we use light oil for diesel engines, emissions of carbon dioxide are inevitable," says Isuzu president Susumu Hosoi. Euglena has also been using algae to develop jet fuel with airline operator ANA Holdings. Isuzu and Euglena hope to have the new biodiesel developed by 2018. Aerial maglev transportation is coming to the campus of a defense contractor in Tel Aviv, Israel, Wired reports. The SkyTran personal rapid transit system uses small pods on an elevated magnetic track to move people from place to place. The pilot program will see SkyTran come to the corporate campus of Israel Aerospace Industries as soon as next year. The pods are hailed by phone, and carry passengers along the magnetic rail system at speeds of up to 44 miles per hour. The passive magnetic system levitates the pod attachment a centimeter above the rails, while a burst of electricity propels the pod forward. If the test at the campus goes well, SkyTran could spread to Tel Aviv at large, moving up to 12,000 people per track per hour with top speeds of 150 mph. The pre-production prototype of the Toyota FCV will make its North American debut at the 2014 Aspen Ideas Festival on Friday, June 27. The hydrogen car's finished exterior was revealed in Japan on Wednesday along with its nearly $70,000 price tag. It will go on sale in Japan by April of next year, and will come to Europe and California in the summer of 2015.

Isuzu truck concepts include honeycombed ‘toaster on wheels’

Isuzu took to its hometown auto show to highlight its work in developing next-generation transport trucks, showing eight vehicles and four powertrain systems at the 45th Tokyo Motor Show. The most notable of the bunch are a pair of concepts: the FD-SI, a light-duty delivery truck designed around principles found in the insect kingdom, and the Elf EV, an all-electric version of its light-duty workhorse featuring a large-capacity battery with rapid-charging capability. From a design perspective, the FD-SI will get all the attention — much of it probably of the bemused sort. In truth, it looks like a futuristic toaster on wheels, a rolling box structure fitted with honeycomb patterns on the side panels and a glass cab windshield that seems borrowed from a heavy-duty construction crane. It turns out the honeycomb motif is no mere design whim; Isuzu says its designers focused on the "group intelligence" of insects and tried to apply that principle to the delivery vehicle. So the honeycomb exterior is replicated in the cargo space as hexagonal tube-shaped boxes, which the automaker says is a good compromise between strength and storage space. Inside the cab, the driver controls and seat have all been centralized, with the steering wheel retractable, to encourage smoother operability and more comfortable living space for the driver. "We want to support the drivers, the front-line people of "Transport," with unconventional ideas," Isuzu says. The Elf EV, on the other hand, is a zero-emissions, low-vibration delivery truck powered by a lithium-ion battery that'll take the vehicle at least 100 km, or 62 miles, on a single normal or fast-charge. It sports a 4x2, rear-wheel drive transmission with independent suspension in the front and leaf suspension in the rear. Here's a quick list of Isuzu's other Tokyo offerings: A 6x6 all-wheel-drive truck, featuring single wheels on all axles, built for rough terrain such as areas hit by major natural disasters. 80th anniversary editions of the Giga heavy-duty truck, geared with a remote monitoring system to transmit vehicle data for remote analysis to ensure safe driving; the Forward medium-duty truck, which boasts 10 percent higher fuel economy than its 2015 version; and the internal-combustion version of the Elf light-duty truck, which is sold in the U.S. as the N-Series.