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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 Tells Dealers To Stop Selling Six Models

Toyota has told North American dealers to stop selling six popular models with heated seats because the fabric doesn't meet flammability standards. One soft material beneath the seat covers does not comply with U.S. safety standards, company spokesman John Hanson said. No fires or injuries have been reported, but Toyota can't legally sell cars that don't comply with U.S. safety codes, Hanson said. The company is still totaling how many vehicles are affected, but it will be in the thousands, according to the spokesman. The stop-sale order could mean trouble for Toyota and its dealers because it covers the company's top-selling vehicles. Dealers can no longer sell certain Camry, Avalon, Sienna and Tacoma models from the 2013 and 2014 model years, as well as Corollas and Tundras from 2014. The Camry, for instance, is the top-selling car in the U.S. with more than 408,000 sales last year. It depends on how long the repairs will take. Hanson said the company already has a new material that's being installed at factories and will be put in cars that are on dealer lots. "We don't think it will take long to get the parts and make the changes," Hanson said, without getting more specific. As for vehicles already on the road, Hanson says Toyota has reported the problem to the U.S. National Highway Traffic Safety Administration, which will decide if the sold vehicles should be recalled. A NHTSA spokesman said he would check into the matter. "We don't believe that there is a safety issue here because there have been no reports of any problems," Hanson said. The stop-sale order affects cars and trucks distributed to dealers in the U.S., Canada and Mexico. In addition, some vehicles were exported outside North America, Hanson said. The problem was discovered by safety regulators in South Korea, who disassembled seats and tested individual fabrics, Hanson said. U.S. safety standards require fabrics to resist flames at a certain rate, but the one fabric didn't meet the standard, Hanson said. Toyota spokesman Naoki Sumino in Japan said the affected vehicles were sold since August of 2012, when the fabric supplier was changed. Toyota has been struggling to regain its once sterling reputation for quality after announcing massive recalls over several years, starting in 2009, for a variety of defects including braking, accelerators and floor mats. The company was fined for being slow on recalls, which affected more than 14 million vehicles, and faces lawsuits.

Supra successor may be all-electric sourced from Tesla; MR2 returning too?

Rumors of a revival of the Toyota Supra and MR2 have been swirling for years right up until just this week when high-level Toyota employees all but confirmed their return.
But now The Detroit Bureau has put together news from different sources suggesting that the next Supra might be all electric. The report cites recent comments from Toyota senior executives hinting at plans to work with Tesla on a new joint project. The FT-HS Concept (shown above) seems a logical inspiration for a new Supra.
And on the other side of the equation is Tesla's design chief Franz von Holzhausen who was quoted last year saying his company was looking at its next project, probably a sports car, that would follow next year's intro of the Model X. He went on to suggest the car would compete directly with BMW's 3 Series, which, in coupe form, could be a worthy competitor to a Supra as well.