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Toyota announces production increase for Mirai fuel cell vehicle

Toyota is building them. People are coming. So Toyota's going to build some more. Cue the strings. The Japanese automaker apparently got more than it bargained for after starting sales of its first mass-produced hydrogen fuel-cell vehicle last month. On Thursday, Toyota announced plans to ramp up production starting next year. Toyota will build 700 Mirai units this year, and will then bump that to 2,000 vehicles next year and 3,000 in 2017. The previous production plan had the same numbers, except for what would happen in 2017. The increase is coming because Toyota's already received pre-orders for 1,500 Mirai vehicles. With US and European sales slated to start later this year, Toyota didn't want to leave itself short-stocked. Toyota confirmed what was already being surmised last month by the Japanese newspaper Nikkei, which said that Toyota was ready to spend almost $170 million boosting production capacity of the Mirai. Most of this year's sales will be in Japan, with the US and Europe gradually accounting for a larger chunk starting next year. In November, the automaker disclosed details of the Mirai's initial US sales, saying that the model will be available in California this year for either a base price of $57,500 or a lease price of $499 a month for 36 months (with $3,649 due at signing). And if that sounds steep, remember that the hydrogen refueling, wherever it can be found, is free for as long as three years. Check out Toyota's press release on the bumps in production below. Toyota to Increase 'Mirai' Production Toyota City, Japan, January 22, 2015-Toyota Motor Corporation today announced that it will increase production of the "Mirai" fuel cell sedan, which launched in Japan on December 15, 2014. The new plan calls for production to increase from the 2015 level of 700 units to approximately 2,000 units in 2016 and approximately 3,000 units in 2017. Considering the approximately 1,500 orders received in the first month of sales in Japan, and the upcoming launches in Europe and the United States later this year, it was decided that the supply structure should be adjusted to reflect the level of demand for the vehicle. Sales plans for Japan, the U.S. and Europe following the production increases will be formulated taking into consideration each region's level of hydrogen infrastructure development, energy policies, car-purchasing subsidies, consumer demand, environmental regulations, and other factors.

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

Toyota to pay $11 million after trial for fatal Camry crash

Years after Toyota's unintended acceleration fiasco, the company is still making headlines for cars with sticky gas pedals. A federal jury in Minnesota decided yesterday that Toyota should pay $11 million for its role in the crash of a 1996 Camry that resulted in three deaths and sent a man to jail. A stuck pedal caused the Camry of Koua Fong Lee to accelerate uncontrollably and impact an Oldsmobile Cutlass Ciera, killing its driver and his nine-year-old son, and paralyzing a six-year-old girl, who later died of her injuries. Two other passengers in the Olds were seriously injured. Lee spent nearly three years in prison on a charge of vehicular homicide, until the unintended acceleration recall erupted. He filed a motion for a new trial and won, and then joined the suit against Toyota filed by the victims and their families of the 2006 crash that left him imprisoned. The jury found Toyota 60 percent responsible for the accident, with the remaining 40 percent of blame going to Lee. Toyota has denied that the 1996 Camry, which wasn't included in the company's sweeping accelerator pedal recalls, was at fault. Toyota released a statement saying the company respects the jury's decision but believes the evidence clearly showed the vehicle wasn't the accident's cause. The company said it will study the record and consider its legal options. Under Minnesota law, the way the jury allocated fault means Toyota is responsible for paying all damages, minus 40 percent of the amount awarded to Lee, said Lee's attorney, Bob Hilliard. That brings Toyota's total liability to $10.94 million. Lee will receive $750,000 of that total. During the trial, Hilliard, told jurors there was a defect in the car's design. He said the Camry's auto-drive assembly could stick, and when tapped or pushed while stuck, it could stick again at a higher speed. He also accused Toyota of never conducting reliability tests on nylon resin pulleys that could be damaged under heat and cause the throttle to stick. "This is what makes the car go. This is what turns it into a torpedo, a missile, a deadly weapon," Hilliard said during his closing argument. Toyota said there was no defect in the design of the 1996 Camry. The company's attorney, David Graves, suggested that Lee was an inexperienced driver and mistook the gas pedal for the brake. Toyota also noted that Lee's car was never subject to the recalls of later-model Toyotas.