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Toyota wants improved crash scores with midcycle facelifts

The performances of some Toyotas in the Insurance Institute for Highway Safety's (IIHS) regimen of crash tests leave something to be desired. Consider the small overlap frontal crash test: only six Toyota, Lexus and Scion vehicles have undergone the new test, yet all but one of them received a poor rating. Osama Nagata, CEO of Toyota Motor Engineering & Manufacturing North America Inc., says midcycle vehicle updates are in the works to address the safety issues brought to light by the IIHS test, Automotive News reports. He confirmed that the RAV4 is getting safety updates following its crash test performance last month, but he didn't name any other models.
All three Toyotas that were tested - 2013 RAV4, 2012-2013 Prius V, 2012-2013 Camry - received poor ratings. The 2007-2012 Lexus ES 350 and 2006-2013 IS 250/350 also received poor ratings. The only other Toyota Motor Corp. vehicle to score better than poor is the 2014 Scion TC. It received an acceptable rating in the small overlap frontal crash test and is the only recent vehicle in Toyota's line-up to get the IIHS Top Safety Pick+ rating.
The small overlap front crash test measures the safety of a car when its front left corner is strikes an object during an accident, bypassing traditional crumple zones, which deform in a way to protect passengers. In 2009, automakers were alerted to the forthcoming addition of the test, which was first implemented last year, IIHS spokesman Russ Rader says. They responded with differing intensity, he says, pointing out that Subaru and Honda started incorporating design changes early on so their cars would perform well in the tests.

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.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.