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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

Renault and Nissan forge deeper alliance

If the automotive industry's current era could be summarized by one trend - from a corporate aspect, anyway - surely it would be conglomeration. But of all the major auto groups that have emerged over the past several years, none have kept themselves at arm's length quite like the Renault-Nissan Alliance.
Much like Fiat and Chrysler, Renault and Nissan are presided over by a common chief executive. But whereas Sergio Marchionne's Italian-American alliance has moved swiftly from a transatlantic partnership to a merged company in the span of less than five years, Carlos Ghosn's Franco-Japanese alliance has stood oceans apart since 1999. But now the Renault-Nissan Alliance is following the lead set by Fiat Chrysler Automobiles in bridging that distance through several key measures.
For one, Renault and Nissan will make increased use of common platforms, R&D, systems and testing. The two automakers will also cooperate more closely on manufacturing and supply chain management, purchasing and human resources. To manage the increased cooperation, the alliance has appointed several new executive vice presidents from within its ow ranks and a new management committee to be chaired by Ghosn, details about which you can read in the press release below.

Datsun reveals new On-Do budget sedan in Russia [w/video]

When Nissan revived the Datsun brand name, it essentially hit the "undo" button on the rebranding it undertook decades ago. But this time, the Datsun name is being used solely as a budget brand for developing markets. The reborn marque launched in India this past July with its Go hatchback, returned in September with the Go+ minivan and revealed the Redi-Go concept just last month. And now it's back again with the new On-Do sedan.
Launched in Moscow by CEO Carlos Ghosn, the On-Do was designed and engineered in Japan specifically for the Russian market - Nissan's fifth largest worldwide - where it will be built at the AvtoVaz plant in Togliatti. Decidedly budget-oriented, the Datsun On-Do is a four-door, five-seat econo-box measuring 172 inches long, 67 inches wide and 60 inches tall with an 18.7 cubic-foot trunk which Datsun describes as class-leading. Punctuating an otherwise bland shape is a large front grille and lighting front and rear that looks (and very well might be) bigger than the wheels.
Not that the Datsun On-Do needs a big contact patch to transfer power to the road: motivation is provided by a 1.6-liter engine with a grand total of - wait for it... wait a little longer - 87 horsepower. Which might strike you as a reasonable amount of muscle, considering the 400,000 rubles Datsun is getting for the On-Do (but consider that translates to about $11,300). That's a couple grand more than what Nissan gets for the Micra in that other giant northern country, or about the same amount it gets for the Versa in the US (which sells in Russia for 499k in rubles) - both of which are powered by what is in all likelihood the same 1.6-liter four but producing 109 hp. Of course Russia has different tax rates than the United States or Canada, but with such little power, the Datsun would fall into Russia's lowest tax bracket.