Auto Industry Shuts Down in Post-Quake Japan

Japan is one of those few countries that are well prepared for natural disasters like earthquakes.  But even in Japan there was chaos and widespread destruction and suffering after its northeastern coast was battered by a massive earthquake and tsunami on March 11.

The earthquake whose magnitude has been recorded as 9.0, unleashed huge tsunami waves up to 10 meters (33 ft) in height within minutes of striking Japan, washing away cars and ships and even buildings in the coastal area near the epicenter.  Several Japanese car companies had to completely suspend vehicle production.

Many automakers like Nissan, Subaru, Honda, Mazda, Mitsubishi, Toyota and Suzuki have not only their headquarters in Japan, but also key manufacturing facilities located there as well.  Since many of these plants have now been shut down this could also affect sales of models in countries overseas.

One of the factors preventing a regular production schedule at Japanese auto facilities is the concern for employee security and safety.  In addition, infrastructure has been severely damaged in major industrial areas, there are rolling blackouts being introduced because of the damage to the power grid, and suppliers are struggling to logistically organize the delivery of vital supplies and components to the ravaged areas of the country.

Since major auto factories are located close to the most badly affected earthquake areas, five of Japan’s largest automakers have temporarily shut down their production lines.  Toyota has suspended activities till around March 16.  But Nissan (March 18), Honda (March 20), Mazda (March 20), and Subaru (March 21) will be confronting a longer idle period.  At Suzuki, plants will be closed until March 17, while Mitsubishi has already resumed production of its own after a short shutdown.

Another fall-out of the recent tragedy is that Japanese automotive parts have had their shipments to American and European automobile companies disrupted.  Read more »

Technorati Tags: Japan, Japanese car, automotive

Suzuki plans to sell cost-effective Maruti Cars in Japan

It has been 26 years since Suzuki Motors Corp. launched its first car in the Indian market under the brand name Maruti Suzuki.  The company is now set to launch low cost Maruti car models in the Japanese automobile market, from where even Korea’s auto giant Hyundai Motors withdrew after stiff competition there had endangered its growth plans.  The first Maruti model to be introduced in Japan will be the Maruti A-Star.

Maruti’s importance is growing in the global plans of Suzuki Motors.  It currently contributes to over half of the Japanese automaker’s profits and generated about 33% of its total turnover each year rising from just 10% in 2005-06.

According to S. Nakanishi, Managing Director, Maruti Suzuki, considering the manner in which Maruti models are capturing the global market, the Japanese car market is certainly not far away.  The A-Star meet’s Europe’s stringent emission norms and is perfectly suited for hitting the highly developed market of Japan, where even top global car makers are finding it tough to survive.

Maruti’s A-Star, though relatively new in the Indian market, contributes to almost 25% of the total exports (800,000 cars) by Maruti Suzuki.  Currently, Maruti is developing several contemporary models, some of them being small cars, to be launched soon.  By 2015, Suzuki will be investing Rs 60 billion (around $1.3 billion) in India to take Maruti’s  production capacity per year to 1.75 million cars, and will also establish a new R&D center for producing cars on its own for the global market . Read more »

Technorati Tags: Maruti car, Japan, Japanese car

Beat Gasoline Prices with Fuel Efficient Cars

A few days ago, the price of crude oil briefly touched $100 per barrel ($25 per liter) for the first time since late 2008. Rising crude prices inevitably drive up gas prices, and then not just the consumers but auto manufacturers begin to get worried.  In 2008, when oil last hit the $100 mark and gasoline prices rose above $4 a gallon ($1.1 per liter), several auto companies were caught unawares with large line-ups of unsold trucks.

Rising prices of gasoline
Today gas costs over $3.19 per gallon ($0.9 per liter) on an average, that is, 53 cents more than a year ago.  If the turmoil in the Middle East persists, prices could shoot up to $4.

Not surprisingly, the soaring oil prices are fueling the demand for more fuel efficient cars.  Consider this.  If you switched from a vehicle giving 30 mpg (13 km per liter) on highways to another that delivers 40 mpg (17 km per liter) , assuming gas costs $3 a gallon, you would save over $4,000 throughout the vehicle’s lifetime.  And if gas prices rise to $4 per gallon, those savings could increase to $6,000 or so.

Automakers worldwide are now being forced to enhance the efficiency of their cars.  Five years back, few vehicles gave a mileage of above 30 mpg.  Nowadays, you’ll find more vehicles delivering 40 mpg in city driving or on the highway mainly as a result of stricter government rules and technological advances.  There are around 20 highly efficient 2011 model year vehicles today, which is thrice the number available back in 2006.

All new vehicles sold in 2016 will have to reach a fuel efficiency of around 35.5 mpg, which is about 40% higher than the current standards.  Today, regulators are even considering efficiency levels touching 62 mpg by 2025.

Technology to the rescue
Automakers are able to enhance fuel efficiency of their cars through advances in technology.  Some of these include the use of turbochargers, diesel engines, newer batteries, materials like aluminum for reducing the weight of vehicles, and more efficient tires, and also developing newer methods for improving aerodynamics.

High-mileage vehicles in the market
Better mileage vehicles come with high upfront costs, but they also offer long-term benefits.  So let’s check out the fuel-efficient cars available today.

Japanese cars with hybrid, combustion and electric engines with modern technology generally get 40 mpg or above.  These cost more than gasoline-run cars, but they compensate for the higher upfront costs through lower fuel expenses during the lifetime of the car.

Hybrid cars like Toyota Prius and the Insight and Honda Civic hybrids have a regular gasoline engine in addition to a big battery for powering the car.  Honda Civic hybrid prices start from $24,000, while the Toyota Prius costs about $23,000.  The price of a basic Civic with a combustion engine however starts around $16,000.

Nissan’s all-electric car – the Leaf, costing around $ 32,780 can give 100 miles on battery power, after which it needs recharging.  Other niche electric cars though also meeting the benchmark of 40 mpg are too costly for middle-class buyers.

Mazda MX-5 Reaches New Milestone With 900,000 Units

When Mazda’s production of its popular MX-5 sports car, called the Mazda Roadster by the Japanese, touched 531,890 units, Guinness World Records certified it as the “Best selling two-seat sports car” in the world.  But that was way back in 2000.  On February 4 this year, when production touched 900,000 units in Hiroshima, the roadster broke yet another production world record for two-seater sports cars.

When the Japanese automaker’s production of the Mazda MX-5 crossed 700 000 and, then later on, 800 000 units, Guinness had to repeatedly update the record.  Now almost 22 years since mass production began, Mazda’s popular sports car MX-5 has crossed yet another milestone.

In the two decades since the first-generation models of Mazda MX-5 were introduced, times have changes and so have vehicles.  Conservation of the Earth’s depleting natural resources and protection of the environment has become an important issue for car manufacturers, making them upgrade their car models to meet newer environmental norms.  The Mazda MX-5 too has seen two total product redesigns and also a number of upgrades.

Way back in the 1960s and the 1970s, there were a number of fun-to-drive, lightweight sports cars offering free-spirited, open-top motoring and smooth handling.  Mazda revived this spirit in the 1980s, by introducing a new roadster fit for the modern generation.  The most advanced engineering techniques were used to manufacture the MX-5.  It was launched by Mazda in February 1989 to remind people that driving could be fun in spite of stringent quality and safety standards.  Based on the well-known principle of mounted archery (Jinba Ittai), in which horse and rider act as one, the MX-5 Miata is certainly fun to drive, though it won’t shatter any 0-60 records.

To date, the bulk of the Miatas and MX-5s, adding up to nearly half a million, have been bought in North America, 274,081 have gone to Europe and 165,013 to Japan.  But no matter where its markets lie, the Mazda MX-5 is the world’s most raced car and Mazda’s longest running car globally.

The MX-5′s enduring success can be attributed to its immense popularity the world over.  In fact, it is common to come across proud owners at car fan club meetings who cherish their MX-5s like a beloved partner.  Obviously, a car that evokes such sentiments is more than a mere sports car for owners.

Now that yet another barrier has been smashed, Mazda is currently getting Guinness to ratify the new record of 900,000 units and getting ready to roll out the millionth MX-5 in the near future.  Even as the company is preparing for its next production milestone, it stays committed to enhancing the MX-5′s fun-to-drive character as well as its safety and environmental capabilities.

Technorati Tags: Mazda, Mazda MX-5, Japan

How was the year 2010 for Japanese Car Manufacturers?

Automobile manufactures in Japan had 2010 as a year of mixed fortunes.  According to the Japan Automobile Dealers Association, total sales of new trucks, cars and buses was 3.23 million last year which shows 10.6% increase over the previous year.  In the recent past, the increase in sales of new vehicles was noticed first in 2003 by 1.5% and the total sale of that year was 4.03 million vehicles.

Sales of fuel-efficient hybrid vehicles was boosted by Japanese government by providing incentives till August last year.  There was an increase in sales of fuel-efficient vehicles during this period and again we can see a slump in the sales since September 2010.  However, it was the first time in the last thirty years that we had seen such an overall increase in sales.  As per the auto dealer association spokesman, the highest percentage  increase recorded was 11.9% in the year 1989, when 5.56 million vehicles were sold.  All these figures are non-inclusive of mini cars sales and sales of trucks with 606 cubic cm or less engine capacities.  They further say that the drop in monthly sales for last four months could be visible in sale of December month.  This decline is about 28.3% from a year earlier to 179,666 vehicles.

Last year Toyota Prius recorded highest sales due to the subsidies.  It is expected that the Prius would be the best-selling model of 2010 but it will depend on the data that would be released next week.  Last year’s domestic sales of Toyota was up by 13.8% to 1.53 million vehicles and its Lexus line up was sold with an increase of 18.5% to 33,365 vehicles.  As per this data Toyota expects a fall of 12% in domestic sales to 1.93 million vehicles in 2011.   Honda Motor Co. recorded 5.1% increase with sales of 486,774 vehicles last year.  Nissan has recorded 7.4% increase in sales to 499,252 vehicles in the domestic market last year.

As such the auto dealers association has not predicted anything for 2011.  However, The Japan Automobile Manufacturers Association expects a drop in vehicle sales from 3.23 million in 2010 to 13% to 2.81 million in 2011 and which does not include mini models.  Whatever increase in sales is seen is mostly because of the incentives given by the Japanese government.  But the government aid ended in September, showing the immediate effect on sales figures.

In spite of the transient peak of sales in 2010, Japanese automakers do not have much hope with domestic sales in 2011.  As Japanese currency is becoming expensive, automakers think that getting vehicles build at abroad and importing back to Japan is much cheaper.  As such Mitsubishi has a tradition manufacturing cars in Thailand and exporting from there.  Since 1988 Mitsubishi expanded its exports to over 140 countries like Australia, Africa, Asia Europe and Latin America.

Japan to build 100 hydrogen stations for fuel-cell cars by 2015

To combat the skyrocketing gas prices and to comply with the tightening environmental standards, Japanese auto makers are fiercely promoting the new electric and hybrid cars that offer a green alternative to the combustion engine.  Japanese auto makers including Toyota, Honda and Nissan are also contemplating to mass produce and market the next generation vehicles powered by fuel cells, in the Japanese domestic market by 2015.  Top car, gas and oil companies in Japan have come together to create the infrastructure needed to run hydrogen fuel-cell vehicles.  Their strategy is to first create a domestic market for this new technology and then compete with rivals in other countries.

These eco-friendly vehicles will be powered by hydrogen fuel cells. Fuel-cell cars will use the electricity generated by the reaction between oxygen and hydrogen.  These vehicles powered by fuel cells are currently not available for sale in Japan.

Top Japanese car as well as oil and gas companies have confirmed the plan regarding fuel-cell car development during next five years.  They have united to establish the required infrastructure to bring fuel-cell vehicles in the market.  Ten energy companies in Japan have given their consent for their coordinated efforts for such expansion in a joint announcement with Nissan, Toyota and Honda.  Japanese oil companies and gas suppliers will need to build nearly hundred hydrogen supply stations in four major cities – Tokyo, Osaka, Fukuoka and Nagoya.  These cities are expected to get ready for the hydrogen powered fuel-cell vehicle launch.

Wide feedback is expected for the improvement of fuel-cell vehicles as there is a rising demand for eco vehicles.  Also, fuel-cell cars have a larger range than electric vehicles and they generate electricity by converting hydrogen with water and heat as a by-product.  However, the current cost of infrastructure is very high.  As per the Ministry of Economy, Trade and Industry, approximately 600 million yen are required to construct one hydrogen fueling station.  But Oil and Gas firms hope to reduce the costs to nearly 200 million yen, when they will construct around hundred hydrogen stations.  As per executive vice-president of Toyota, as the technology become more commonplace, it would ultimately help to drop down the prices and he believes that the fuel-cell cars could be available for less than 8,000,000 yen.

The Japanese government has agreed to review the rules and regulations in order to establish this low-carbon cars concept.  And if needed, they will revise the rules by March, 2013 so as to create a fuel-cell cars market by 2015.  Government of Japan will levy a new tax on users of primary fossil fuel and will further take action to meet the country’s ambition to reduce gas emissions by twenty-five percent in next ten years.

Strict environmental standards are actually encouraging factor for the developments in hybrid cars combustion engine.  Currently hybrid cars have more demand in Japan’s domestic market and same demand is expected in near future for electric vehicles.  At present fuel-cell vehicles are not available in market but the major car companies are working on the concept of commercializing of fuel cell car concept.

Online Car Insurance Quotes are Almost Instant

Buying a car is making a big investment for most people.  So, whether you have a new or used car, you would need a car insurance to protect your investment.  Car accidents are unexpected and the car damages are often very expensive to repair.  The best car insurance can protect your car from any inconvenience in case of an accident.  However, before buying a car insurance, you should compare car insurance quotes from various insurance companies, and select the one which provides the best protection within your budget.

In the old days, you would need to visit the insurance company office and fill up lengthy forms, to get insurance quotes.  This process of getting the car insurance quotes used to be very time consuming.  However, these days you can use the Internet for research to get car insurance quotes online within minutes.  Comparing online car insurance quotes is by far the easiest and most convenient method to insure your car with the best car insurance company available in your area.  All it requires is a few clicks and you are on your way to getting the best insurance coverage for your car.

All the information you need about different kinds and functions of policies, the companies in your area offering insurance, state laws you were not aware of but certainly need to know and any other information relevant to car insurance, is now available to you on your computer.

Your choices on the net are unlimited as compared to the limit on choices offered by a company in your locality.  You do not need to be reliant on salesmen and commercial ads.  The features of the policy, company background, price range and terms and conditions are all visible to you even before you finalize on the company you are going to insure with.

It is no longer necessary to wait for insurance companies to respond or to stand in long queues to purchase car insurance.  Just a few clicks and all the information can be gathered by you instantly, sitting in the comfort of your home.  All it requires is the creation of a spreadsheet by filling in all the data you have gathered.  Looking up consumer reviews on the insurance companies offering car insurance in your area will also assist you in short listing and making your final decision on the company best suited for your requirements.

It used to be difficult in the past for buyers to select the type of car insurance policies on the basis of salesmen and marketing executives’ offers.  Consumers were always apprehensive wondering if they had taken the right decision.  It was too late to regret their decision when they found that the policy they had bought was not really suited to their needs.  But online information availability has made it much simpler to find the car insurance policy most applicable without having to depend on the opinion of others.

There are various options available for you to see and decide from.  Making a proper study of the state laws regarding car insurance, of the car insurance companies and of the various types of policies they offer and the sub-clauses and terms and conditions will help you arrive at a studied and intelligent decision to buy.  By going for online car insurance quotes, you will congratulate yourself on making the best choice.

Subaru launches Impreza WRX STI Spec C in Japan

Subaru Tecnica International recently announced special specifications versions Impreza WRX STI tS and WRX STI A-Line tS only for the Japanese Market.  These two vehicles by Subaru are based on 4-door WRX STI and WRX STI A-Line respectively with unique heavy duty features.  Toray Industries Inc. and Fuji Heavy Industries jointly introduced two tS model in last six months.  This is the first time they have adopted mass production vehicle for Subaru.  These two new special editions by Subaru come with performance upgrades.

The WRX STI A-Line tS and the WRX STI tS models are STI’s complete cars which gives drivers total pleasure to drive it and to own such model.  This version comes with light weight components, including an aluminum hood and carbon roof to get both performance enhancements and weight reduction.  The vehicle adopts STI’s unique specification equipment for interior, exterior, and strengthened underbody chassis.

The Spec C obtains a stronger, bigger front suspension and the rear obtains a conventional mechanical limited-slip.  The tS editions are equipped with parts which includes add-on element for front bumper, push engine switch, special tuned coil Springs, flexible rear suspension link and flexible rear support, side sill plates of tS logos, “tS” logo on steering wheel, 18-inch lighter alloy rims, flexible front Tower Bar, special tS rear and front ornaments, a STI-tweaked suspension and newly designed STI alloy wheel.  The interiors of tS models  are fitted with custom sill plates and Recaro seats.

The other specialty of tS edition is that it uses a twin-scroll 2.0 liter Boxer unit which is turbocharged and gives 308 hp.  It gives maximum torque of 430 Nm which make use of a five-speed manual gearbox.  Whereas the tS A-Line come with a single-scroll 2.5 liter turbocharged powerplant which uses five-speed automatic transmission and can produce 300 hp and 350 Nm of torque.  These two new editions of STI have aluminum hood, extremely proficient ball bearing turbocharger, lighter battery, laminar window glass, and retuned ECU.  The engineers have revised the fuel pump to give constant delivery and power steering’s oil flow also increased.  Engine performance and efficiency has enhanced by installed an intercooler water sprayer to cool intake air.

Subaru will produce 400 units of tS models with starting price of $56,488 for the STI tS and $50,463 for STI A-Line.  These models will be available throughout Japan from January 25, 2011 at Subaru dealerships.

At Shiotsu Autotrade, we also deal with used Subaru Sports cars.  Both Subaru Impreza WRX, and the Subaru Impreza WRX STI can be considered sports cars.  Even though both of them only have a 4-cylinder, 2.0 or a 2.5 Liter engine,  they both can deliver over 200 HP of power because of the turbo charger they are fitted with.  They are also much lighter than other sports cars, and come with four-wheel drive, which gives them a good advantage while racing.