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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

Autoblog Podcast #317

Mitsubishi Mirage, Toyota thinks of beefing up US production, Marchionne on Alfa, Dart and minivans, Ford Atlas concept, Honda Gear concept
Episode #317 of the Autoblog Podcast is here, and this week, Dan Roth, Jeff Ross and Michael Harley bookend the other podcast topics with a pair from the Montreal Auto Show, the Mitsubishi Mirage and Honda Gear concept, and in between we talk about Toyota building all its US-market cars stateside, Hyundai building a Nurburgring test facility, Sergio Marchionne's latest words about Alfa Romeo, Dodge Dart powertrains and the future of Chrysler vans. Some chatter about the Ford Atlas concept finishes up the meat of the 'cast and then we wrap with your questions. For those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #317:

Next Nissan GT-R to take cues from GT-R LM Nismo Le Mans entry

For those wondering why Nissan named its coming Le Mans Prototype the GT-R LM Nismo, colliding the two worlds of sports car and prototype racing, an article in Autocar might have the answer. The deeper union is explained by saying that the next-generation GT-R will use "hybrid technology that will closely align it" with the GT-R LM Nismo.
The point could be further driven home by the fact that the GT-R LM Nismo will begin its FIA endurance racing campaign next year, and the next GT-R is due to debut next year as a 2016 model. The expectation is that it will use a hybrid system possibly dubbed R-Hybrid and perhaps developed by Williams. Just like performance car makers Ferrari and Audi, Nissan wants its racing efforts to pay off with road car technology, company vice president Andy Palmer saying they "want to link technological linkages between future evolutions of the GT-R and evolutions of what we do in LMP1, and the two do go in both directions."
The bigger question is, with the GT-R getting hybrid assistance, will it also get the weight gain that usually comes with it? Enthusiasts would love to see the trend reversed, especially on a car that's already no lightweight.