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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

Honda and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.

Junkyard Gem: 1996 Isuzu Trooper

Though Americans had been buying the Isuzu-built Chevrolet LUV pickup since the 1972 model year (plus plenty of Isuzu-derived Chevettes and Chevette components later on), the first widely available Isuzu-badged vehicle available here was the LUV-sibling P'Up. That was the 1981 model year, and the I-Mark (Gemini) and Impulse (Piazza) soon followed. Later in the 1980s, GM (which owned a hefty chunk of Isuzu by that time) began selling Isuzu-built Spectrums and Storms with Chevrolet and/or Geo badges… but Isuzu started its United States business by selling trucks, and that's the only type of Isuzu you could buy new here when the company departed our shores in 2009. The Trooper SUV first went on sale here for the 1984 model year, and eventually the Trooper became the biggest-selling Isuzu in North America. Here's an example from the sales heyday of the middle 1990s, found in a Colorado self-service yard. In its homeland, this truck was known as the Bighorn. Elsewhere around the globe, however, it went by far too many names to list here (though Trooper was the most common). Highlights include the Holden Jackaroo and Caribe 442. Honda's desperation to cash in on the 1990s North American SUV craze led to the creation of an Acura-badged Trooper, known as the SLX and sold here from the 1996 through 1999 model years. As part of this arrangement between Isuzu, GM, and Honda, the Isuzu Rodeo became the Honda Passport here (confusing every North American who had ever bought a Passport-badged Honda Super Cub, which got that name so as not to run afoul of the builders of the Piper Super Cub aircraft) and Isuzu dealers sold Honda Odysseys with Oasis badges. Once we'd gotten a few years into our current century, the only Isuzu-badged vehicles you could buy new here (not counting commercial trucks) weren't even built by Isuzu at that point. One was the Ascender (a badge-engineered Chevy Trailblazer) and the other was the i-Series pickup (a badge-engineered Chevy Colorado). Oh, sure, a handful of Axioms and Rodeos slunk out of American Isuzu showrooms in the early years of the 2000s, but the clock really started ticking for Isuzu USA when the final Troopers showed up for 2002. When this truck was built, Isuzu was engaged in an eye-gouging, kidney-spearing price- and financing-deal war with Mitsubishi Motors and its Montero.