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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

Jaguar solution to keyless start could save lives

UPDATED: An earlier version of this story indicated the Jaguar keyless start function was meant as a safety feature, when in fact, it is meant as a convenience one and will not work as described if automatic stop/start is not engaged. Today, The New York Times published an article about more than two dozen deaths related to drivers accidentally leaving their cars running, closing their garages and later succumbing to carbon monoxide that flooded their homes. The reason has been identified as "keyless start" features, or proximity entry and push-button start, where owners don't need to physically handle a key or fob to gain entry into the vehicle or start it. It is the latest, and deadliest, issue raised with this system after those related to security and simple inconvenience (for instance, leaving the car at a valet or car wash with the fob in your pocket). From my personal perspective, The New York Times had a rather harsh "evil carmakers" tone throughout the article. This is not a matter of a known faulty component, as with the GM ignition switch recall. This has as much to do with user error where people leave their car without pressing the "off" button and without noticing the engine is still running. About half of the cars in question are produced by Toyota and Lexus, brands that have offered keyless start longer than most. They are also brands with high rates of elderly owners, who seemingly made up a majority of reported deaths and injuries. One fire department in Florida even started a campaign alerting those in the area of the dangers of leaving your car running when it noticed a correlation between an increase in cars equipped with keyless start and calls related to carbon monoxide poisoning. I see several contributing issues at play, most of which go well beyond this particular issue. First is insufficient training of owners by dealers and/or owners not paying close enough attention during this training. Cars are complicated, but you should at least know how basic functions work. Second, woefully inadequate driver training in this country. Third, and with apologies to the AARP, insufficient testing of elderly drivers and/or insufficiently low standards for elderly drivers. If you don't know you have to shut the car off or cannot hear that an engine is running, perhaps you shouldn't be driving. Fourth, re-examining keyless start systems.

Chevy Bolt wins 2017 Green Car of the Year

We knew that a plug-in vehicle was going to win the 2017 Green Car of the Year award this year, given that all five finalists have a way to charge up. And when Ron Cogan, the editor and publisher of Green Car Journal, announced the winner – the 2017 Chevy Bolt EV – he said that the car itself represents one of those times in the auto industry when everything is about to change. Similar to the invention of the starter motor, things are about to get different. For now, though, the fact that the Bolt EV won an award sounds like the same old thing all over again. Just this week, it was named Motor Trends Car of the Year and to the Car And Driver Top 10 list. The other four finalists for Green Car of the Year included the Toyota Prius Prime, the Chrysler Pacifica, the Kia Optima (including hybrid and plug-in hybrid models) and the BMW 330e iPerformance. Last year, the winner was the 2016 Chevy Volt. Did Green Car Journal make the right selection this year? See the award ceremony below.