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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

New Nissan Pulsar marks brand's return to the European C-segment [w/videos]

Following a small teaser, Nissan has unveiled its newest entry into the hotly contested European C-segment. Making new use of the Pulsar nameplate, it will attempt to take the fight to market stalwarts, like the Ford Focus, Volkswagen Golf and Vauxhall Astra.
The new five-door will be built on Nissan's modular CMF2 architecture, which also underpins the Euro-spec Qashqai and X-Trail (known in the US as the Rogue). It's a larger vehicle than one of its main challengers, the Golf, riding on a 106.3-inch wheelbase, which is 2.4 inches longer than the VW. It's also longer overall, at 172.6 inches.
The new Pulsar is a moderately powered little five-door, boasting an engine lineup familiar to anyone that knows the Qashqai. A 1.2-liter, turbocharged gas engine offers up 113 horsepower, while those that need a bit more oomph can wait for the late-availability, 187-hp, 1.6-liter turbo that American drivers will know from the Juke crossover. Diesel fans will be able to opt for a 1.5-liter mill that delivers 192 pound-feet of torque and 108 hp. No surprise here, but continuously variable transmissions are the order of the day.

Infiniti Q50 Eau Rouge to cost over $100,000?

Enthusiasts have been clamoring for Infiniti to build a car like the Q50 Eau Rouge for years. In concept form, it employs the GT-R's much-loved 3.8-liter twin-turbo V6, tuned to produce 560 horsepower and 442 pound-feet of torque, with the whole works slid underneath fetching luxury sedan bodywork with carbon fiber aero aids. At this point, the model is rumored to be all but certain for production. The company recently even put Sebastian Vettel in one to show it off. However, Infiniti President Johan de Nysschen is suggesting that the model's lifetime could be brief, limited and rather expensive.
The Infiniti boss recently gave a long interview to Motor Trend that spilled a lot of beans about the Eau Rouge. While he refused to officially admit that the super sedan was on the way, he admits that he's "pushing the Eau Rouge concept for commercialization."
According to de Nysschen, if built, the production version will hew closely to the concept with the engine from the GT-R, but the seven-speed automatic transmission and all-wheel drive system will come from the Q70. And while that would make the Eau Rouge a performance powerhouse, it might also be a rarity on the road: