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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 Accord barely edges Toyota Prius as California's best-selling car

The Toyota Prius definitely still matters, at least to car buyers in California. The long-lived hybrid was the state's second-bestselling vehicle in 2014 by moving 71,210 units across all of its variants, including the Prius C. The Toyota was the leader there in 2012 and 2013 but lost the sales crown this time – just barely – to the Honda Accord, which sold 71,578 examples. The results in the Golden State illustrate just how different the auto market there is compared to the rest of the country. Prius sales slumped last year nationwide with a drop of 11.5 percent to 207,372 examples sold. However, according to the LA Times, the model's numbers ticked up two percent in California in 2014. Taken by itself, the standard hatchback model would have been the sixth-bestseller there, with 39,036 units purchased. While the Toyota showed modest growth, it wasn't enough to fend off the Accord's 17 percent year-over-year jump in the state, though. According to the Los Angeles Times, the rest of the California top ten included the Honda Civic, Toyota Camry, Corolla, Ford F-Series, CR-V, Nissan Altima, Sentra and Chevrolet Silverado, respectively. That list was quite a departure from the nationwide bestsellers in 2014, which was led by the F-Series, Silverado and Ram pickups. The Camry was the country's foremost car on the list in fourth place overall to beat the Accord in fifth. The Prius didn't break into the ten biggest sellers in the US last year. Related Video: Featured Gallery 2014 Honda Accord V6 Touring: Review View 42 Photos News Source: LA TimesImage Credit: Copyright 2015 Drew Phillips / AOL Green Honda Toyota Car Buying Hatchback Hybrid Sedan sales California hybrid sales toyota prius c

Recharge Wrap-up: Toyota HQ goes solar, CARB fights methane

Opel denies allegations about illegal emissions software as the German transport ministry begins its review. Opel has turned documents over to German authorities, and promises to hold a "constructive dialogue" while answering any lingering questions, says the automaker. Opel says that "the allegations reflect a wrong understanding of how diesel engines work." As German magazine Der Spiegel renewed questions about a cheat device similar to those used by Volkswagen, Opel reiterates, "We do not have any software that recognizes whether a vehicle is undergoing an exhaust emissions test." Read more at Automotive News Europe. South Korean President Park Geun-hye suggests that Seoul and Paris work together on the promotion of fuel cell technology. French industrial gases company Air Liquide manufactures liquid hydrogen, while Korean automaker Hyundai has already deployed its Tucson Fuel Cell crossover in select markets around the world. The two companies have signed a deal to cooperate on hydrogen technology. President Park visited an Air Liquide research center during a trip to Europe, where she said that a partnership between Hyundai and Air Liquide can help their countries stay ahead in the fuel cell vehicle market. Read more from Green Car Congress. CARB is proposing new rules for oil and gas facilities that would reduce methane emissions by more than 50 percent. The system, treatment, operation, and device standards would apply to onshore and offshore oil and gas production, storage, processing, and transmission facilities, covering procedures for leak detection and repair, equipment replacement, record keeping, and data reporting. "Methane emissions from the oil and gas industry contribute to California's [greenhouse gas] emissions and cost-effective reduction opportunities already exist and are available for use in the sector," CARB says. "In addition, reducing methane emissions from this sector will help slow the rate of climate change in the near-term and have an immediate beneficial impact on climate change." A hearing is scheduled for July 21 to discuss the proposal. Read more from SNL. Toyota's new Plano, Texas campus will get 25 percent of its energy from the sun. As Toyota plans to move into its new North American headquarters next year, it is building a 7.75-megawatt solar system to provide renewable energy for its operations. The solar arrays will be built atop three parking structures by the end of 2017.