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Watch Indian cars fail Global NCAP crash tests miserably

It's taken for granted that cars currently for sale in Western countries pass crash tests, and often merit four- or five-star safety ratings in NCAP or NHTSA tests. This is why these scores attained by Indian market cars are so galling: seven vehicles currently sold in India got zero stars in any category – a horrifying clean sweep. It is understandable that cars sold in a developing market are cheap and equipment levels are low, but acceptable crash safety is something that should be considered essential in all markets. The cars tested in the Global New Car Assessment Programme were Hyundai's Eon, Maruti Suzuki's Eeco and Celerio models, Mahindra's Scorpio SUV and several Renault Kwid models. All of the cars were manufactured in India for the Indian market, and the Mahindra Scorpio was the sole larger car. It was first introduced in 2002, with updates made in 2006 and 2014. Mahindra has long planned to export its vehicles to the United States, with the likeliest version a pickup variant of the Scorpio. Renault's Kwid crossover was tested in three versions. Initially, the Kwid was tested with and without airbags, and on both accounts it scored zero stars in adult occupant protection and two stars in child occupant protection. Renault strengthened the bodyshell and the crash tests showed the updated Kwid's structure did not collapse; still, it was rated unstable and that it couldn't withstand further stress. On closer inspection, the structural reinforcements were found to be done only on the driver's side of the passenger cell. Renault has confirmed more safety updates are on their way. "We welcome Renault's efforts to correct this and we look forward to testing another improved version with airbags. Renault has a strong record of achievement in safety in Europe and it should offer the same commitment to its customers in India", says Global NCAP's David Ward. "Global NCAP strongly believes that no manufacturer anywhere in the world should be developing new models that are so clearly sub-standard. Car makers must ensure that their new models pass the United Nations' minimum crash test regulations, and support use of an airbag." The airbag-equipped Kwid was the only model of the seven cars tested that was fitted with one. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This is how the Mahindra Scorpio performed. This content is hosted by a third party.

Suzuki and VW finalize their divorce

The rocky divorce between Suzuki and Volkswagen is finally over after working its way through the International Court of Arbitration since 2011, according to the Japan Times. In the final settlement to end the companies' disputes, Suzuki agreed to pay VW an undisclosed amount for not living up to the agreement to use the German automaker's diesel engines. While they won't disclose the exact sum, Suzuki said in a statement that the money "will not have any significant impact" on its 2015 fiscal year results, which will end in March. The arbitration court took the biggest step to end this transcontinental partnership in August 2015 when the body ruled VW needed sell its 19.9-percent stake in Suzuki. However, the Japanese company wasn't entirely off the hook because VW was still allowed to sue for damages over the diesel engine issue. This latest decision finally clears up that dispute. Like most marriages, the union between VW and Suzuki began with stars in both parties' eyes. The Germans paid $2.8 billion to buy 19.9 percent of the Japanese company in December 2009. VW was supposed to get greater access to the auto market in India, and Suzuki hoped to capitalize on access to its partner's advanced technology. By 2011, rumors started percolating that things were contentious behind closed doors. VW allegedly tried to assert control over Suzuki's operations, and the Japanese company reportedly wasn't happy with its access to the German tech. Suzuki even bought diesel engines from Fiat, rather than VW. Later that year, company CEO Osamu Suzuki announced he would end the alliance, and they started working through arbitration. Notification Concerning Resolution of Arbitration by Settlement As Suzuki has reached a settlement regarding the arbitration that Suzuki filed with the International Court of Arbitration of the International Chamber of Commerce on 24 November 2011, Suzuki informs you of the following: 1. History from the Request for Arbitration to the Settlement As announced in the "Notification Concerning Arbitration Award" dated 30 August 2015, the Tribunal indicated that it would address the issue of alleged damages arising from Suzuki's breach of the agreement claimed by Volkswagen AG ("VW") in a further stage of the arbitration proceedings. Suzuki reached a settlement with VW in regard to such arbitration proceedings on 10 February 2016. Accordingly, the arbitration proceedings have been concluded. 2.

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