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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

Suzuki: 'No comment' on returning to the U.S. with the Jimny

It is impossible not to love the Suzuki Jimny. A prototypical cute ute, with equal parts cuteness and utility, it not only defined its segment, it became a cult classic. Now, it's back, but unfortunately unlikely to come to the American market as the Jimny, Samurai or anything else. "We have no comment on the Jimny or Suzuki returning to the U.S. market," says Nathalie Geslin, a spokesperson for Suzuki in France, from the floor of the Paris Motor Show, where the adorable Jimny made its recent premiere. "For that you'll have to ask Suzuki headquarters in Japan." In France, this is what is known as Le Brushoff. Geslin did confirm that, in the markets around the world where the Jimny will appear, it will be available only in one spec: an adaptable, RWD/AWD, closed hardtop with a manual transmission with available Low range, and powered by a 102-horsepower 1.5-liter gasoline engine. "Suzuki has eliminated diesel motors from their whole range," she said, a notable move and a trend flowing from the fuel's immutable high particulate and noxious gas emissions, and growing global sensitivity to their effects. Actually, she tells us, there will be one other spec. "In the Japanese market, there will be a Kei Car version, an actual smaller Kei Car, which means it will be powered by a motor of less than 600cc." Just 1,500 of these cars are expected to be sold in the French market, mainly to people who, according to Geslin, are not off-reading aficionados, but "People who go off-roading in their normal life, who live in the mountains or work in an area with rugged conditions." This sounds to us like a description of every small-scale goat cheese producer in the White Mountains in rural Vermont, every boutique mountainside vintner in Sonoma county, every yellow micro-beet farmer in the Wisconsin Dells. And all of us who live in four-season climates and love the outdoors but think a Jeep is perfect except that it's a third too large. Like the Jeep, the Jimny is retro cool without being retro. It is just itself. And we need it. If it takes only 1,500 potential buyers in France to allow it to be sold there, how many does that translate to in America? If all of us start emailing Suzuki headquarters every day to beg for it, maybe we can find out. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Toyota will roll out solid-state battery EVs globally in a couple of years

GANDHINAGAR, India — Japan's Toyota Motor will in a couple of years globally launch vehicles with solid-state batteries that charge faster and last longer, an executive said on Thursday at an investment summit in India. Solid-state batteries promise to dramatically improve the driving range of electric vehicles (EVs), a key element of a strategic pivot Toyota unveiled in June to make up ground lost to Tesla and Chinese rivals, such as BYD, in the EV race. Last year, Toyota and oil refiner Idemitsu Kosan said they would tie up to develop and mass produce all-solid-state batteries, which they aim to commercialize in 2027 and 2028, followed by full-scale mass production. "We will be rolling out our electric vehicles with solid state batteries in a couple of years from now," said Vikram Gulati, the India head of Toyota Kirloskar Motor. It "will be a vehicle which will be charging in 10 minutes, giving a range of 1,200 kms (750 miles) and life expectancy will be very good". Gulati was speaking at the Vibrant Gujarat Global Summit where one focus of the Indian government is attracting more investments to scale up EV manufacturing capacity in the world's third largest auto market. At the start of the summit on Wednesday, Japan's Suzuki Motor said its Indian subsidiary and Toyota partner Maruti Suzuki would export the group's first battery EV to Japan and Europe — marking the first time for Maruti to export to its parent company's home country. Electric models made up around 2% of India's car sales last year, but the government is targeting 30% by 2030 and India's road transport minister said at the summit he sees annual EV sales in India reaching 10 million vehicles by 2030. On Toyota's plans for solid-state batteries in India, Gulati said the carmaker had various sustainable technology options that would differ based on the country, market and customer preferences. "Right now, for India, flex fuel and ethanol can be a no-brainer right away," he added India's trade department has backed lowering taxes on hybrid vehicles to help the transition to cleaner energy sources, following demands by Japanese carmakers, Reuters has reported. Gulati said the Indian government should consider a carbon-based tax structure for cars, which would make it technologically agnostic and more equitable.  Green Lexus Suzuki Toyota Electric