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Why Japan's government is looking to curb its adorable kei car market

Each region around the world has its stereotypical vehicle. The US has the pickup and Europe the five-door hatchback; but in Japan, the kei car reigns supreme. These tiny cars are limited to just 660cc of displacement but they've also come with lower taxes to make them more affordable. To make of the most of their small size, they've often had quite boxy styling like the Honda N-One shown above, and because they're Japanese, they've often had quirky names like the Nissan Dayz Roox. However, if the Japanese government has its way, the future popularity of these little guys might be in jeopardy. The problem facing them is that Japan is an island both literally and figuratively. After World War II, the Japanese government created the class as a way to make car ownership more accessible. The tiny engines generally meant better fuel economy to deal with the nation's expensive gas, and the tax benefits also helped. It's made the segment hugely popular even today, with kei cars making up roughly 40 percent of the nation's new cars sales last year, according to The New York Times. The downside is that these models are almost never exported because they aren't as attractive to buyers elsewhere (if indeed they even meet overseas regulations). So if an automaker ends up with a popular kei model, it can't really market it elsewhere. The government now sees that as a threat to the domestic auto industry. It believes that every yen invested into kei development is wasted, and the production takes up needed capacity at auto factories. The state would much rather automakers create exportable models. To do this, it's trying to make the little cars less attractive to buy, and thus, less attractive to build. The authorities recently increased taxes on kei cars by 50 percent to narrow the difference between standard cars, according to the NYT. If kei cars do lose popularity, it could open the market up to greater competition from foreign automakers. Several companies complained about the little cars stranglehold on the Japanese market last year, but since then, imported car sales there have shown some growth thanks to the improving economy. Featured Gallery 2013 Honda N-One View 20 Photos News Source: The New York TimesImage Credit: Honda Government/Legal Honda Nissan JDM kei kei car

Honda execs take 'quality-related' pay cut after Fit Hybrid's 5th recall

Generally, the best policy in life is to admit when you're wrong and just accept the consequences. However, that attitude generally seems to be a bit less common in the world of business - at least without some government or legal prodding. So, it's especially surprising to learn that top Honda executives in Japan are taking a pay cut for the next three months following the fifth recall of the Fit Hybrid (pictured above) in the last 12 months.
According to Reuters, Chief Executive Takanobu Ito is taking a 20-percent pay cut to make amends for the quality issues. Also, 12 other high-ranking executives are taking 10 percent drops in their salaries. In addition to those temporary changes, Honda is creating a new position in charge of monitoring vehicle quality.
The latest recall fixes "noise-related defects," according to Reuters, on both the hybrid and naturally aspirated versions of the Fit, both variants of the Vezel (the sibling to the future HR-V in the US) and the N-WGN. There have also been three recalls for problems with the hybrid's seven-speed dual-clutch transmission. None of them have caused reported injuries or deaths, and these issues haven't affected US models.

2014 Honda Civic Coupe

Honda lifted the covers off its refreshed Civic Coupe at SEMA earlier this month, showing off its updated styling and redesigned 18-inch wheels, but didn't unveil its interior or mechanical upgrades until today at the LA Auto Show. Eager to show off its latest arrival, Honda allowed me to check out and drive the new coupe a few weeks ago.
The interior, which was hidden beneath heavily tinted glass at SEMA, features new colors, upgraded seating materials and new technology. The interior themes are now more color coordinated and feature upgraded Tricot soft weave. Black is the standard interior color, with a choice of black or gray seats. A new display audio system is also found on the EX/EX-L trims. The seven-inch capacitive-touch screen, with a matte finish to reduce the annoyance of greasy fingerprint marks, allows users to not only tap once for a function, but to double-tap, slide, flick and pinch - as if they are using a familiar smartphone or tablet. The new infotainment interface not only accepts USB and Bluetooth data exchange, but has also been configured with HDMI for future upgrades. Some of you may have also noticed the exterior mirrors on the SEMA car, as they were fitted with cameras for Honda's blind spot minimizing Lanewatch system. It is now offered on the Civic Coupe for EX trims and above.
Mechanically, the new Civic Coupe rides on an upgraded suspension system that features revised spring rates (front up by four percent, rear up by three percent), a stiffer rear stabilizer (up by 25 percent) and larger 16-inch wheels (wearing 205/55R16 tires). The engineering objective was to improve handling and responsiveness while flattening cornering. According to Honda, the tweaks should give the Civic Coupe better linear steering feel than either the Hyundai Elantra or the Ford Focus.