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Recharge Wrap-up: Japan supports hydrogen, Fools against fuel cells, BlueIndy controversy

Japan hopes to expand the use of hydrogen energy by subsidizing fuel cell vehicles, according to The Japan News. The trade ministry plans to include the subsidies in its 2015 budget to coincide with the expected launch of Toyota's Fuel Cell Vehicle and the Honda FCEV hydrogen car. By jump-starting purchases of hydrogen cars, Japan hopes that innovation and mass-production will get a boost and the cost of fuel cell vehicles will be competitive with gasoline-powered models by the year 2025. Japan plans to have 100 hydrogen fueling locations operating by March 2016, and wants to halve the cost of building those stations by 2020. The amount of the subsidies has not yet been set. Investing website The Motley Fool isn't quite as optimistic as Japan about hydrogen cars, and is instead bullish about Tesla Motors. The Fool points to Tesla's strong stock performance, and predicts future growth will come from more car models in the future - starting with the Model X - as well as the company's proposed Gigafactory for manufacturing batteries. If Tesla's charging technology continues to catch on, that only improves its financial prospects. The article has some harsh words, however, for hydrogen: "Fuel cells are an inferior automotive technology and for fundamental efficiency, cost, and infrastructure reasons always will be mere compliance gimmicks." Yeesh. As part of a program to build charging stations for the Indianapolis EV carsharing service BlueIndy, utility company Indianapolis Power & Light (IPL) wants to raise its electricity rates an average of 44 cents a month per residential customer to help pay for its share of the project. State consumer advocacy agency Indiana Office of Utility Consumer Counselor and consumer watchdog group Citizens Action Coalition oppose the plan, according to Greenfield, Indiana's Daily Reporter. The BlueIndy program, which is a partnership between the city of Indianapolis and battery manufacturer Bollore Group, will provide up to 500 cars for rent at 25 charging sites around the city. Those who oppose the rate hike call IPL a monopoly and say the amount of the increase is not allowed under state law and that the program wouldn't benefit working class and low-income citizens. A hearing regarding IPL's proposal is scheduled for July 23. A Mitsubishi Outlander PHEV will run the 2014 Asia Cross Country Rally, Hybrid Cars reports. The rally covers 1,367 miles of woods, swamps and mountains from Thailand to Cambodia.

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

Minnesota couple puts 414k miles on a 2014 Mitsubishi Mirage

A couple in Minnesota just traded in their 414,000-mile 2014 Mitsubishi Mirage, which is notable for any car, topping many of the Junkyard Gems we've featured. We were also impressed because that's a lot of miles in a car that we weren't especially fond of. But the couple that owned it, Jerry and Janice Huot, clearly liked it. Dubbed the "Purple Won" in a nod to Prince, the subcompact endured six upper Midwest winters as an all-purpose utility and delivery vehicle. "I always loved the comments at gas stations and grocery stores and waves from people as I’d drive by," Jerry said. "Kids would always stop and point. Everybody seemed to love that car; it would make everyone smile whenever they saw it." The Huots were repeat Mitsubishi buyers in search of something with better fuel efficiency than their Cadillac. While Mitsubishi didn't specify which model the Huots traded in, it's safe to say that whatever it was, the 2014 Mirage would have been a significant upgrade in that respect, as it was rated at 37 mpg in the city, 44 on the highway and 40 combined when it was sold new; the EPA has since re-rated it at 36/42/39.   "Right in the middle of the showroom was this little purple Mirage that got 44 mpg," Janice told Mitsubishi. "IÂ’d had an Outlander Sport and Montero Sport before and loved them, so it seemed like a good choice. We drove the Mirage home that day, right off the showroom floor." "Janice drove it mostly for the first 7,000 miles or so, but when winter came, she wanted all-wheel-drive, so she got a 2015 Mitsubishi Outlander Sport," Jerry says. "But then I started using the Mirage for my business. I am a courier. I deliver samples from various doctorsÂ’ offices to labs, so I drive up and down the state and around town in Minneapolis all the time. The Mirage never missed a beat. It got me up and out of our gravel driveway, even in the middle of winter, when others got stuck in the snow." According to the Huots, the Mirage only needed two noteworthy repairs on its way to 414,000 miles: a replacement starter motor between 200,000 and 300,000 miles and a new set of wheel bearings some time after 150k, both of which they say were addressed under warranty. We checked with Mitsubishi, who confirmed that the Huots purchased an extended warranty from the dealership, hence the coverage of failed items at such high mileage. Apart from that, the Huots say it has needed only regularly scheduled maintenance. What replaced it? Another Mirage, predictably.