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Tesla pulling plug on Toyota RAV4 EV battery deal

The future of the Toyota RAV4 EV appears to be in doubt. Tesla supplies the EVs battery packs, and it says that production ends later this year.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said in its quarterly financial filing obtained by Bloomberg. "Our production activities under this program are expected to end in 2014," the company said.
This timeline fits closely with the original production plans for the RAV4 EV. When the $100-million project was first announced, Tesla said that it expected to supply battery packs for the vehicle from 2012 to 2014. Building components for the Japanese automaker continues to bring in money, though. In the company's Q1 2014 letter to shareholders, it said: "Automotive revenue included $15 million of Toyota powertrain sales." According to Bloomberg, Toyota has sold just 1,594 RAV4 EV models from 2012 through April 2014. Initially, the business had estimated that it would sell 2,600 units of the electrified crossover.

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

General Motors became second-largest US advertiser in 2013

General Motors might be mired in several recalls, as well as the ongoing investigations from the National Highway Traffic Safety Administration and Congress into the automaker's response to those recalls. However, the company can celebrate taking the title of the US' second-largest advertiser in 2013. According to Ad Week examining a recently released study, total advertising spending in the US posted its fourth consecutive year of rising expenditures with 0.9-percent growth to $140.2 billion. Of that, the auto industry spent $15.2 billion to promote its goods in 2013, up 3.8 percent.
The country's biggest advertiser was Procter and Gamble, which dropped $3.17 billion in 2013, an increase of 11.8 percent. GM became the nation's second largest promoter with $1.794 billion in spending, up 10 percent. The biggest proportion of that money went to sell Cadillac and GMC. AT&T barely lost out with $1.793 billion in advertising, 15.2 percent growth. The 10 businesses with the highest ad investments spent a cumulative $15.9 billion during the year, 6.6 percent higher than 2012. Toyota came in eighth place making it the only other automaker to rank in the top 10.
The study also indicates that there is a shift in advertising spending from television and print to the Internet. There was 15.7 percent more money outlaid to promote products online in 2013 than the previous year. In comparison, television dropped 0.1 percent, newspapers were down 3.7 percent and radio fell 5.6 percent.