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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.

Toyota outsells VW for global sales crown, apologizes with a vow to 'be honest'

Toyota Chairman Akio Toyoda bows in apology during a press conference Tuesday over the group companies' quality scandals. (Getty Images)   Every quarter, the stock market hangs on how much sales growth Tesla and other startups have experienced. There's growth, but then there's sheer output, and when it comes to deliveries dominance, one company can't be touched. Toyota on Tuesday announced that it remained the world's top-selling automaker for the fourth year running, with record sales of 11.2 million vehicles in 2023. Toyota's global group sales jumped 7.2% last year; the numbers include sales at Daihatsu and truck unit Hino Motors. Toyota's parent-only vehicles, which include the Toyota and Lexus brands, hit a record of 10.3 million vehicles in 2023. Gasoline-electric hybrids made up about a third of those. Battery electric vehicles accounted for less than 1%. Toyota's annual output handily beat runner-up Volkswagen Group, which this month reported a 12% rise in deliveries last year to 9.2 million cars. That growth was driven largely by demand for Audi, which sold 1.9 million vehicles. The auto industry in 2023 enjoyed a post-pandemic recovery as supply chain bottlenecks eased, though shipping problems through the Red Sea so far this year have stalled that progress by some automakers, causing some car plants in Europe to suspend production. Toyota's global group sales have now topped 10 million vehicles for nine of the past 10 years, except for 2020 when the COVID-19 pandemic delivered a blow to the auto sector. Scandals and an apology Toyota's chairman apologized on Tuesday for scandals at the three group companies. Daihatsu, Hino and affiliate Toyota Industries have been beset by governance issues involving certification test procedures for cars and engines that could potentially hurt the brand's global reputation for quality and safety. "I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities at Hino Motors, Daihatsu and Toyota Industries," Toyota Chairman Akio Toyoda told reporters. He was speaking at an event to announce a vision for the Toyota group, which was founded by his great-grandfather and now includes 17 companies.

Toyota, Lexus to build more CUVs to meet surging demand

What was the biggest takeaway from the auto industry's 2014? Besides the fact that recalls are now a sad and mostly unremarkable part of a vehicle's life, it's that you can't be a competitive, mainstream brand in the US without a really strong line of crossovers, SUVs or pickups. We saw evidence of this as recently as Monday, when Hyundai unveiled its HCD-15 Santa Cruz Concept, and now we're seeing it again with Toyota. The company already has a comprehensive lineup of both mainstream and luxury CUVs and SUVs, although surging demand – sales were up 16 percent last year, Bloomberg reports – has led the company to increase its production tempo at the plants responsible for the RAV4 and Lexus RX. "The freeze is still in place until the end of March of 2016," Toyota's Jim Lentz told Bloomberg during this week's Detroit Auto Show, referencing the production bump at the Japanese and Canadian factories responsible for the models. "That hasn't changed. All indications are that it will lift, but right now it has not lifted." The increased sales are even spurring the brand to consider additional CUVs, including a compact that would slot in below the RAV4, Lentz told the business publication. Such a move would give Toyota a player in an increasingly competitive and important segment. In 2014 alone, mainstream brands, including Honda, Mazda, Chevrolet and Jeep, have announced brand new products destined for the compact CUV market. "We're going to have to look at how the market under RAV4 develops," Lentz told Bloomberg. "There's no question that it's going to. That's going to be the next growth spurt." Related Video: