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U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

Honda lets us 'drive' the FCEV; PHEV with 40-mile EV range

Blue skies for our children. That's Honda's wonderfully Japanese/English slogan that it uses as a fresh shibboleth to describe the company's plan for the future. It's vague enough to be positive, positive enough to be corporate, and corporate enough to be repeated in presentations around the world. I've certainly heard it a million times. The 2015 Honda Meeting in Utsunomiya, Japan this week was, thankfully, held under a brilliant blue autumn sky, on Honda's R&D track filled with the roar of short test drives in the NSX hybrid and the deafening electric silence of the upcoming hydrogen fuel cell FCEV. But that wasn't all. The amount of technical information Honda offered to visiting journalists during the Meeting was nothing short of overwhelming, which is why I'm glad that Autoblog editor Seyth Miersma was along for the ride. We were both at the same event, but we paid special attention to very different things. You can read his take on the four-motor CR-Z EV and the NSX, among other things, here, and get my take on a bunch of Honda's green news below. Honda calls the FCEV the "ultimate clean performance" vehicle. Honda FCEV: A Short First Crack At Honda's "Ultimate" Vehicle Sure, I got to take a lap in the NSX, but the FCEV was my highlight of the event. This was the first time Honda has let outsiders test drive the upcoming fuel cell vehicle, which the company calls the "ultimate clean performance" vehicle and which is due in the US in next year after a launch in Japan in the spring of 2016. The bad news is that the entire length of the test drive was a measly kilometer, totally straight, with one U-turn at the half-way point. So, even though I went through the course three times (two more than originally scheduled), I can't really say I know how the car drives. What I can tell you is that there are two drive modes, normal and sport, with the main difference being that sport offers stronger regenerative braking and a bit quicker acceleration response. The higher regen level does not allow for one-foot driving, sadly. There's a blue orb that glows in the digital dashboard to indicate the power output of the fuel cell stack (not the motor), so even though the car is fairly quiet as you drive, there's some minimal level of connection between the driver and the "engine." Creature comforts include Honda's excellent LaneWatch and a glossy touch screen for the infotainment system.

Honda thumbs nose at fleet sales, claims it leads in key vehicle segments

Fleet sales are a way of life in the automotive industry. There are many non-retail customers that need vehicles, but going too far can reduce brand image and vehicle resale value. While some of its competitors have fleet sale that account for up to 20 or 30 of overall sales, Honda is bragging that it has the lowest fleet sales of all mainstream automakers for the first five months of 2013.
After calculating new-car registration data from R.L. Polk, Honda says that just two percent of its sales through went to fleet customers compared to an industry average of 19 percent. Even though this means Honda leaves plenty of sales on the table each month, it also claims to have the highest resale value and lowest cost of ownership among its competitors. In terms of retail sales, Honda says that the Civic, Accord, CR-V and Odyssey all lead their respective segments, and it breaks down/brags about its retail sales success in the press release, which is posted below.