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Automotive Sector

 

July 2008

Nisshinbo Creates Platinum-Free Carbon Catalyst For Fuel Cells
Nisshinbo Industries Inc. has worked with the Tokyo Institute of Technology to develop the technology to use carbon instead of expensive platinum as the electrode catalyst for fuel cells. The company hopes to have a practical version of the new catalyst ready in fiscal 2009, and will start by commercializing a product for the electrodes of residential fuel cells. Later, it will develop and commercialize a version for automotive fuel cells. In a fuel cell, the catalyst promotes the oxidation-reducing reactions at the electrodes that lead to the generation of electricity from the hydrogen fuel and oxygen in the air. Platinum is now used as the catalyst, but high demand and unstable supplies from main producer South Africa have driven prices sky-high. A 1kw-class residential fuel cell uses several grams of platinum and a 150kw-class automotive fuel cell uses around 60 grams, which at current prices adds 400,000 yen to the cost of a car. The carbon catalyst promises to remove this cost barrier, which along with the needed infrastructure for hydrogen filling stations is a major roadblock to the adoption of fuel cells for homes and cars. The new catalyst is made from nanospheres of carbon. For practical purposes as a fuel cell catalyst, 10 times more carbon is required than platinum; but even in this larger volume, the cost is just a 10th that of using platinum. (The Nikkei; Saturday, July 12, 2008)

Toyota Boshoku To Buy Plant, Begin French Output Of Auto Seats
Toyota Boshoku Corp. announced Thursday that it will start manufacturing automotive seats in France, acquiring a factory from local auto seat supplier Faurecia SA. Toyota Boshoku's seat production at this plant is slated to begin around 2010. The facility will be the Japanese company's first seat assembly site in the European Union. A local subsidiary, Toyota Boshoku Somain SAS, will be formed in August and will purchase Faurecia's seat factory and take on the 300 or so workers there. About 3.9 billion yen will be invested, including the acquisition cost. (The Nikkei; Friday, July 11, 2008)

Renault, Nissan To Launch Electric Car In Portugal In '11
Renault and Nissan Motor Co. said Wednesday that Portugal will be third country in which the two auto makers jointly launch electric cars. Under an agreement reached between the French car maker, its Japanese partner and the Portuguese government, Nissan and Renault will roll out a zero-emission vehicle in the country on the Iberian Peninsula in 2011. The Renault-Nissan alliance hasn't decided on under which brand it will sell the electric model, a Nissan spokeswoman said. Under the agreement, the government will study the infrastructure and any organizations needed to create a nationwide network of charging stations for electric cars. Portugal is the third country after Israel and Denmark to launch Nissan and Renault's electric car. The deal is likely to help Nissan get closer to reaching its ambitious goal of mass-marketing electric cars globally by the end of March 2013. Demand for electric-gasoline hybrid cars and electric vehicles is growing as emission regulations are becoming stricter to deal with global warming. Consumers looking to cut fuel spending due to high gasoline prices are also on the rise. Major global auto makers like General Motors Corp. and Toyota Motor Corp. are racing to develop or upgrade such vehicles. Carlos Ghosn, chief executive of both Renault and Nissan, has said there is potential demand for about 10 million of electric cars worldwide. (Dow Jones; Wednesday, July 9, 2008)

Pedicabs Becoming Popular As Zero-Emissions Transit Service
Bicycle taxis are gaining in popularly as a environmentally friendly means of transportation, with regular service being offered in three municipalities. In addition to Sapporo and Hakodate in Hokkaido and Okinawa's Kohamajima, two locations could see it introduced before the end of the year. And bicycle taxis were available on a trial basis the first six days of July in Iwamiginzan, Shimane Prefecture. Most of these services use the Velotaxi, a German-made roofed tricycle. According to a nonprofit organization that supports Velotaxi operators, around 100 of the bicycle taxis are in operation in 22 locations throughout Japan. Fares vary by operator, but in the Tokyo area a passenger could be expected to pay 300 yen for the first 500 meters and 50 yen per 100 meters after that. Some operators have begun displaying how much carbon dioxide would be emitted by an automobile traveling the same distance. In Kobe, one bicycle taxi operator has begun offering rides for free, covering expenses with revenue from on-vehicle advertising. The service area is limited to central Kobe, but ridership has tripled. (The Nikkei Business Daily; Tuesday, July 8, 2008)

Toyota To Add Solar Panels To Prius; 1st For Major Automaker
Toyota Motor Corp. plans to install a solar power generation system on its Prius gasoline-electric hybrid vehicle when the model goes through a complete makeover as early as next spring, The Nikkei learned Sunday. By doing so, it will become the first major automaker to equip a popular model with a system that can harness sunlight. The high-end trim lines of the redesigned Prius are to have solar panels on the roof, which will supply part of the 2-5kw needed to power the air conditioners. Toyota is taking design and other matters into account when placing the panels. Such details as the number of vehicles to be made and the price will be hammered out later. It is planning to procure the panels from Kyocera Corp., which has a solid track record of providing panels for homes and factories. The carmaker intends to produce about 450,000 Priuses at home in 2009, up about 60% from 2007. In addition to a new solar power generation system, it aims to boost sales by offering a redesigned version that improves fuel efficiency through reduced vehicle weight and other steps. (The Nikkei; Monday, July 7, 2008)

June 2008

Suzuki, GM Co-Develop 1st Fuel Cell Subcompact
Suzuki Motor Corp. said Tuesday that it has developed a new fuel-cell-powered car with General Motors Corp., their fourth such vehicle and first as a subcompact. The Japanese and U.S. automakers started joint development of fuel cell vehicles in 2001. The three prior models were all based on mini-vehicles. Their latest model, the SX4-FCV, can run for 250km without recharging -- 50km longer than its predecessor -- and achieve a maximum speed of 150kph -- 40kph faster. Certified by the Transport Ministry, the SX4-FCV is expected to start trial runs on public roads soon. Suzuki, which aims to commercialize the vehicle at an early date, plans to showcase it at the Group of Eight summit next month in Hokkaido. (The Nikkei; Wednesday, June 25, 2008)

Nissan To Focus On Electric Car For Mass Market
Nissan Motor Co. Chief Executive and President Carlos Ghosn said Wednesday the company will focus on electric cars as a core "green car" product for the mass market, even as major rivals step up offerings of hybrid cars. Nissan, Japan's third-biggest car maker by sales volume, will offer new electric cars by 2010 in the U.S. and Japan, and globally in 2012, in an effort to meet demand for such zero-emission cars amid growing concerns over exhaust emissions and soaring gasoline prices. "We really want to be the first (to offer electric cars) in the mass market," Ghosn said at a press conference after the company's annual general shareholders meeting. Two of its competitors in the domestic market, Mitsubishi Motors Corp. and Fuji Heavy Industries Ltd., which makes Subaru brand cars, also plan on introducing such cars next year. Meanwhile, bigger Japanese car makers such as Toyota Motor Corp., Japan's biggest car maker, and Honda Motor Co., Japan's No. 2 car maker, are pushing ahead with more advanced hybrid cars, rather than electric models. Even so, Ghosn believes electric cars will win consumers over because they are "zero-emissions. The others are not," referring to hybrid and plug-in hybrid cars. "We believe zero-emission is part of what the global market is looking for and (is) ready to pay for," he said. But the CEO also emphasized the company will keep working on developing hybrids, fuel-cell cars and other green technologies to provide a wide range of environmentally friendly vehicles. In an indication of the auto maker's commitment, Ghosn said that he hopes to sell 1 million of electric cars a year globally. This would represent about 10% of the total demand of 10 million of such cars worldwide, that Ghosn has previously cited. He didn't say by what date he hoped to sell the 1 million cars. With respect to pricing, car makers in Japan are probably hoping to raise prices by 2%-3% to help absorb higher raw materials costs, Ghosn said. Japan is the only major market where Nissan hasn't lifted prices recently to reflect higher prices for steel and other raw materials. It has already done so in the U.S. and Europe, he said. Ghosn stopped short of saying whether his company would raise prices in its home market, saying only that it would be hard to do so unless the biggest player in the market makes the first move. As for the outlook for the U.S., auto demand there may drop well below 15 million vehicles this year from 16.1 million last year, in view of the steep drops in May and so far in June. But Ghosn did not seem overly worried about the prospects for the U.S. market, as sales of relatively fuel-efficient passenger cars are growing while those for gas-guzzling pickup trucks and sport-utility vehicles are tumbling. Earlier this month, Nissan said it will boost production of its Altima sedan in the U.S. and cut that of its sport-utility vehicles as consumers clamor for the fuel-efficient vehicles amid $4-a-gallon gasoline. (Dow Jones; Wednesday, June 25, 2008)

Mazda Rotary Hydrogen Hybrid Emerges As 'Dark Horse' Eco Car
The world's first hybrid car powered by gasoline and hydrogen that uses a rotary engine, which Mazda Motor Corp. will introduce by next spring, has suddenly emerged as a serious contender in the market for next-generation eco-friendly vehicles. The hybrid will be the core of the environmental strategy that the company announced Monday. Improving on previous rotary engine cars and using an electric motor, Mazda has increased the engine's power by 40% and doubled the vehicle's range while running on hydrogen alone to 200km. It will lease the Mazda Premacy Hydrogen RE Hybrid minivan in Japan while working to further double its range to 400km within a few years. First offered commercially in 1967, cars with rotary engines were well received in Japan for their powerful performance and novel design, becoming Mazda's mainstay product. But their low fuel economy led to criticism of the vehicle as a "gas guzzler," and sales plunged with the oil crisis in 1973. While many automakers withdrew rotaries from the market, Mazda alone continued development, fighting the aftermath of the economic bubble and tighter government controls on exhaust emissions. In the early 2000s, Mazda's primary shareholder, Ford Motor Co., recommended it stop developing and producing the engines. But growing attention to hydrogen as an alternative fuel is now offering the company a gleam of hope. With its anti-backfire mechanism, the rotary engine can handle highly flammable hydrogen safely, allowing Mazda to create the world's first commercial hydrogen/gasoline hybrids. Fuel cell-powered vehicles also use hydrogen as fuel, but they have the drawback of having to use large amounts of costly rare metals as electrodes to produce hydrogen from water. "Given current cost structures, it will be difficult to make commercially viable fuel cell cars no matter how one tries to improve the existing technology," said Mazda Senior Managing Executive Officer Seita Kanai. While there are currently 80 million cars worldwide, "resources like platinum are available for only one or two million vehicles," Kanai added, making him confident that hydrogen-fueled cars using internal combustion engines will gain popularity before fuel cell vehicles do. Norway's Choice: Despite their lower energy efficiency, lower cost is why Norway chose Mazda's rotary engine hybrids over fuel cell cars for HyNor, a joint project between the government and business to establish a hydrogen supply infrastructure, according to Chairman Ulf Hasfeld. Based on an agreement signed last fall, the Japanese automaker will deliver the Mazda Premacy for use in the project later this summer. Supplying hydrogen remains a challenge, but the infrastructure is expected to gradually spread as major carmakers such as Toyota Motor Corp. and Honda Motor Co. shift the domestic marketing of fuel cell cars into high gear. Mazda has not yet set a leasing fee for its hybrid minivan, but the firm currently leases a hydrogen-gasoline hybrid based on its RX-8 sports car to corporate and government users for about 400,000 yen a month. The company aims to reduce the lease charges by developing economies of scale through mass production. To do so, it will need to collaborate more closely with Ford so that the new car can be offered in more markets. Under Ford leadership since 1996, Mazda has sought to rebuild itself by focusing on compact cars and other fields of its strength. By March 2006, it eliminated all its accumulated losses and reported a seventh consecutive increase in sales and profit for fiscal 2007. This year, it projects 9% growth in global sales to 1.48 million cars, but operating profit will drop by 29% on the stronger yen and higher materials procurement costs. Dependence on exports, the highest among Japanese automakers, is among the challenges Mazda faces as well as the effects of its delay in exploring new markets in the developing world. At a time when the struggling U.S. carmaker increasingly expects Mazda to play an important role in such areas as environmental technology and vehicle development, hydrogen hybrids are certain to help Mazda gain importance within the Ford group. (The Nikkei Business Daily; Tuesday, June 24, 2008)

Mazda Aims For Fuel Use Cuts Of 30% On All Models
Mazda Motor Corp. said Monday that it plans to reduce fuel consumption an average of 30% on its entire lineup of vehicles by 2015 by building more efficient engines and lighter cars. Starting in 2011, the Hiroshima-based automaker will roll out diesel vehicles equipped with new fuel injection systems that increase fuel efficiency by 20% and emit less nitrogen oxides and other pollutants. The Japanese affiliate of Ford Motor Co. will also completely retool its gasoline engines, raising fuel efficiency by 20%. The automaker begin using lighter platforms in 2011 to lower vehicle weights by 100kg or more. In addition, Mazda will premiere its first hybrid offering next decade, possibly one featuring the firm's proprietary hydrogen rotary engine. Mazda is jointly developing fuel cells with Ford, but Mazda Director Seita Kanai told reporters Monday that the cost structure and other factors are limiting the spread of cars using the zero-emission technology. (The Nikkei; Tuesday, June 24, 2008)

Toyota Eyes Next-Generation Battery Amid Soaring Gas Prices
Toyota Motor Corp. President Katsuaki Watanabe on Wednesday unveiled a number of eco-friendly business policies, including developing a next-generation battery in a bid to further boost the automaker's presence in the ''green'' car market. Toyota, which plans to launch plug-in hybrid cars with lithium-ion batteries by 2010, said it will set up a special research team later this month to develop a next-generation battery that can ''far outperform'' current lithium-ion batteries. The research team will initially consist of about 50 engineers and double the number in two years or so, with an eye to commercializing the next-generation battery around 2030. ''Batteries will be a very important technology for the future,'' Watanabe said at the Toyota Environmental Forum held in Tokyo. ''After doing research and development on batteries, I think it will be necessary to commercialize them.'' The automaker is also planning to start producing lithium-ion batteries in 2009 and to move into full-scale production in 2010, under a joint venture with Matsushita Electric Industrial Co., which makes Panasonic brand products. Watanabe said Toyota is considering biofuel, electricity such as that generated by sunlight, and hydrogen as key alternative energy sources amid soaring gasoline prices and increasing worries over climate change. The plug-in hybrid cars to be introduced in Japan, the United States and Europe targeting large-lot corporate users can be recharged from a home electrical outlet, including household solar panels, Toyota said. Toyota aims to sell one million units a year of gasoline-electric hybrid vehicles in the early 2010s and plans to introduce hybrids to all its model lines in the 2020s, Watanabe said. The Japanese automaker became the first car manufacturer in the world to mass-produce gas-electric hybrids commercially with the Prius in 1997. It later expanded the use of its hybrid system to other models. So far, Toyota has sold a total of 1.5 million hybrid units worldwide, contributing to approximately 7 million fewer tons of carbon dioxide emissions that would have otherwise been generated, and reducing gasoline consumption by about 2.7 million kiloliters, according to the company's calculations. The company is due to showcase new hybrid-only models, under both the Toyota and Lexus luxury brands, at the Detroit auto show next year. As another way of seeking greater environmental benefits, Toyota said it upwardly revised its target for CO2 emissions reduction in fiscal 2010 ending in March 2011 in the field of production. Under the new targets, Toyota aims to cut CO2 emission by 35 percent from the level in 2001 across the globe in terms of volume per sales unit, compared with its previous target of a 20 percent reduction. Other Japanese carmakers are also putting more emphasis on eco-friendly cars, with Honda Motor Co. planning to introduce a hybrid version of its popular Fit compact car in the early 2010s and sell a total of 500,000 hybrid vehicles a year sometime in the 2010s. Meanwhile, Nissan Motor Co. plans to introduce all-electric vehicles in fiscal 2010 in Japan and the United States and to mass-market the vehicles globally in fiscal 2012. (Kyodo News; Wednesday, June 11, 2008)

Toyota Eyes Next-Generation Battery Amid Soaring Gas Prices
Toyota Motor Corp. President Katsuaki Watanabe on Wednesday unveiled a number of eco-friendly business policies, including developing a next-generation battery in a bid to further boost the automaker's presence in the ''green'' car market. Toyota, which plans to launch plug-in hybrid cars with lithium-ion batteries by 2010, said it will set up a special research team later this month to develop a next-generation battery that can ''far outperform'' current lithium-ion batteries. The research team will initially consist of about 50 engineers and double the number in two years or so, with an eye to commercializing the next-generation battery around 2030. ''Batteries will be a very important technology for the future,'' Watanabe said at the Toyota Environmental Forum held in Tokyo. ''After doing research and development on batteries, I think it will be necessary to commercialize them.'' The automaker is also planning to start producing lithium-ion batteries in 2009 and to move into full-scale production in 2010, under a joint venture with Matsushita Electric Industrial Co., which makes Panasonic brand products. Watanabe said Toyota is considering biofuel, electricity such as that generated by sunlight, and hydrogen as key alternative energy sources amid soaring gasoline prices and increasing worries over climate change. The plug-in hybrid cars to be introduced in Japan, the United States and Europe targeting large-lot corporate users can be recharged from a home electrical outlet, including household solar panels, Toyota said. Toyota aims to sell one million units a year of gasoline-electric hybrid vehicles in the early 2010s and plans to introduce hybrids to all its model lines in the 2020s, Watanabe said. The Japanese automaker became the first car manufacturer in the world to mass-produce gas-electric hybrids commercially with the Prius in 1997. It later expanded the use of its hybrid system to other models. So far, Toyota has sold a total of 1.5 million hybrid units worldwide, contributing to approximately 7 million fewer tons of carbon dioxide emissions that would have otherwise been generated, and reducing gasoline consumption by about 2.7 million kiloliters, according to the company's calculations. The company is due to showcase new hybrid-only models, under both the Toyota and Lexus luxury brands, at the Detroit auto show next year. As another way of seeking greater environmental benefits, Toyota said it upwardly revised its target for CO2 emissions reduction in fiscal 2010 ending in March 2011 in the field of production. Under the new targets, Toyota aims to cut CO2 emission by 35 percent from the level in 2001 across the globe in terms of volume per sales unit, compared with its previous target of a 20 percent reduction. Other Japanese carmakers are also putting more emphasis on eco-friendly cars, with Honda Motor Co. planning to introduce a hybrid version of its popular Fit compact car in the early 2010s and sell a total of 500,000 hybrid vehicles a year sometime in the 2010s. Meanwhile, Nissan Motor Co. plans to introduce all-electric vehicles in fiscal 2010 in Japan and the United States and to mass-market the vehicles globally in fiscal 2012. (Kyodo; Wednesday, June 11, 2008)

Nissan To Debut Low-Emission Diesel Version Of X-Trail SUV
Nissan Motor Co. announced plans Monday to launch a low-polluting diesel model of its X-Trail sport utility vehicle in September. The SUV will be the first commercial vehicle to meet both Japanese emissions regulations to take effect next fiscal year and North American standards, which are considered the toughest in the world. Diesel vehicles are fuel efficient and release roughly 20% less carbon dioxide than gasoline-fueled cars. But the popularity of diesel models has been handicapped by their large emissions of harmful substances like nitrogen oxides and particulate matter. In the X-Trail, however, Nissan will employ a filter to capture 99% of particulate matter and has also developed a catalyst to break down nitrogen oxides into water and nitrogen. Diesel engines will first be fitted in X-Trails with manual transmissions. According to Nissan, combining diesel engines with manual transmissions results in smooth acceleration and an enjoyable driving experience. The diesel X-Trail is likely to sell for a few hundred thousand yen more than gasoline models. Next, Nissan intends to sell a diesel-fueled Maxima sedan in the U.S. in 2010. Perceived as being dirty and noisy, diesel vehicles have suffered a bad wrap in Japan to date. But with the spotlight now on their low emissions and other redeeming features, automakers are positioning them alongside hybrids and electric cars. (The Nikkei; Tuesday, June 10, 2008)

Automakers On Forked Road In Tech For Earth-Friendly Cars
The race to develop and produce environmentally friendly cars is entering a new phase, with Toyota Motor Corp. zeroing in on hybrids while Mitsubishi Motors Corp. and others set their sights on electric vehicles. Hybrids are costing less and less to manufacture thanks to volume production, and improved battery performance has lifted their fuel efficiency further. The Toyota Prius, for example, now gets 35.5km per liter. This is more than double the average of 16km per liter for gasoline-powered cars, according to the Japan Automobile Manufacturers Association. And in 2010, Toyota aims to launch a plug-in hybrid, which can be recharged at home, in the U.S. and elsewhere. Meanwhile, a prototype electric vehicle based on a Mitsubishi Motors subcompact needs just 1 yen of power to travel 1km. And a vehicle fitted with a battery that has been recharged for about 14 hours in a household electrical outlet can go around 160km. Electric cars' short travel distances have been highlighted as a drawback, but progress in developing high-capacity lithium ion batteries means that these vehicles can now be used for trips around town. Yet Toyota and others are wary about the reliability of the batteries and are reluctant to commercialize electric vehicles. The lack of recharging facilities is also an issue. For the time being, hybrids and electric cars are likely to be increasingly used for different purposes. Hybrids, which require no special infrastructure, are set to be used to travel long distances, with electric vehicles the choice for shorter trips. The differing roles of Earth-friendly cars could lead automakers to go their separate ways. (The Nikkei; Saturday, June 7, 2008)

World Automakers Uniting To Obey New EU Chemical Rule
Automakers from Japan, the U.S., Europe and South Korea plan to develop as early as next year a common database on chemicals used in autoparts in order to efficiently comply with a new European Union regulation, The Nikkei learned Tuesday. The effort includes the Japan Automobile Manufacturers Association, the Automotive Industry Action Group of the U.S., the European Automobile Manufacturers' Association, and the Korean Automobile Manufacturers Association. Under the Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals, or REACH, companies selling products in the EU must assess the safety of substances used in their products and register this information. Businesses are to spend an estimated total of more than 1 trillion yen over the next 10-odd years to comply with this rule, which came into full effect Sunday. Automakers now need to determine which chemicals are used in their parts, which typically number around 30,000 for just one car, and ensure that their suppliers have registered the relevant information with the EU. Were each automaker to work with its own parts suppliers individually to set up a database, parts suppliers would likely be overwhelmed. But if a single common database with unified rules on how to list information is created for the auto industry as a whole, it would not only let parts markers enter information just once, but also eliminate the need for automakers to check chemical content each time they decide to use new parts. (The Nikkei; Wednesday, June 4, 2008)

Germany's Continental Buys 16% Stake In Lithium Ion Start-Up
Major German autoparts manufacturer Continental AG has taken a 16% stake in Enax Inc., a Tokyo-based lithium ion battery developer, to jointly develop and produce cells for hybrid vehicles. This is apparently the first time a foreign firm has held an interest in a Japanese lithium ion battery manufacturer. Continental acquired its stake via a private placement of shares, spending an estimated few hundred million yen. It has no plans to turn Enax into a subsidiary. The autoparts maker is slated to begin mass-producing lithium ion batteries for a Daimler AG hybrid to be launched in 2009. But Continental lacked technology to make core battery parts, so it is teaming up with Enax to develop and roll out batteries for hybrids and electric vehicles. Enax had already formed an alliance with electronics parts manufacturer Murata Mfg. Co., with which it plans to begin churning out lithium ion batteries by this fall. The two firms will continue with this tie-up. (The Nikkei; Tuesday, June 3, 2008)