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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: Honda FCV Concept comes to Detroit, Toyota seeks young green energy fellows

Honda will bring its FCV Concept to the 2015 North American International Auto Show in Detroit in January. The hydrogen-powered concept made its Japanese debut in November, and will now make its way to North America for the first time. The FCV concept improves upon the design of the FCX Clarity with a more striking appearance and roomier interior. Its smaller powertrain packaging means more space for people, and the FCV Concept seats five passengers. Honda also expects the next-generation fuel-cell car, which is scheduled to go on sale in Japan in March 2016, to cost less and have a range of over 300 miles. Read more in the press release below. The Mercedes-Benz B-Class Electric Drive has been awarded an environmental certificate from the TUV Sud technical inspection authority. The certificate is based not just on the vehicle's operation, but the entire lifecycle of the car, including production and recycling. The B-Class Electric Drive produces 24 percent less CO2 over its lifecycle than the Mercedes-Benz B180 when using the EU electricity mix, and 64 percent less when powered by hydroelectricity. Mercedes credits not just the use of electricity, but also the car's energy management system - such as its radar-based regenerative braking - for its carbon reductions. Read more in the press release below. Scania will test a wirelessly charged plug-in hybrid bus in Sweden. Beginning in June 2016, the bus will be put to daily use in Sodertalje. One of its stops will have a wireless charging station where the bus will recharge for six to seven minutes before continuing on its route again. The charger is located under the road surface and the bus positions itself above it to charge inductively. About $1.3 million will come from the Swedish Energy Agency to fund the test project, which could save up to 90 percent of fuel costs. If expanded to a fleet of 2,000 buses, it could save up to 13 million gallons of fuel each year. Read more at Green Car Congress, and in the press release below. Sandia National Laboratories and Linde are teaming up to expand hydrogen fueling infrastructure. The two groups have signed an agreement to research and develop new hydrogen stations, as well as ways to make fuel cell vehicles more desirable for consumers. They are looking at ways to incorporate hydrogen into existing fuel stations where possible, and make sure that it is able to be done safely.

Toyota Pro/Celebrity Race Scion FR-S [w/video]

Toyota has been hosting its Pro/Celebrity race at the Toyota Grand Prix on Long Beach since 1977. The charity event, which has raised millions of dollars over the years, traditionally pits Hollywood celebrities against professional athletes (including race car drivers) on the full Grand Prix course in modified street vehicles. The short, sprint-style race is popular with the crowds as the amateur drivers race uninhibited - the result is an action-packed race with plenty of excitement and automotive... er... carnage.
Over the decades, the drivers have raced a variety of Toyota products including last year's front-wheel-drive Scion tC. But this year, Toyota announced at the Chicago Auto Show that the new rear-wheel-drive Scion FR-S would be stepping up to the plate. The good news only became better when Toyota Motorsports invited us out to Southern California's Willow Springs Raceway (the same circuit where the drivers train and practice) to be one of the first behind the wheel.
Driving Notes: