Automobile Industrial Policy Updates

Dutch to build smart roads that can recharge car batteries
Next year, the Netherlands will introduce battery charging for electric vehicles on smart roads, an environment-friendly measure aimed at reducing carbon emissions.

While smart cars have been the focus of attention at various international car shows in recent years, the Netherland-proposed smart highways take intelligent transport to a new level. Designed by Studio Roosegaarde, the roads are equipped with luminous induction lamps and sensors for lighting, dynamic paint, and interactive features such as lane sensing.

According to Roosegaarde's published statements, the special luminous paint materials which absorb solar energy during daylight hours reflect light at night, and these are used for demarcation of highway dividers and lanes to help night drivers see the road more clearly.

In addition, the smart roads feature energy-saving distance-sensing devices installed on both sides of the road, which reduce the power consumption of street lamps by gradually dimming the light they emit as vehicles move closer to them.

When winter temperatures are coupled with poor visibility at night, a driver's momentary lapse of attention can result in a car skidding on the ice. The dynamic paint used on smart roads makes the transparent ice crystals completely visible, ensuring the safety of the road users.

The smart road lanes are designed exclusively for electric vehicles and will provide automatic battery recharging for vehicles driving on them. Studio Roosegaarde said that the concept would be implemented in 2013 in the Netherlands. They hope their designs can make the Netherlands a leader in the innovative new field.

EU considers slashing budget for European GPS version Galileo
When European Union member states met in Brussels in early February to discuss Europe's long-term budget for the years 2014 to 2020, many austerity advocates wanted to cut the soaring budget for Galileo satellite positioning system project, which is claimed to be comparable to the American-style GPS.

The New York Times pointed out that this originally very ambitious plan may now stand at a crossroads of uncertainty.

The Galileo system's construction costs were originally estimated at US$1.35 billion (NT$40 billion) but have since trebled to over US$4 billion (NT$118.5 billion). The program is now asking for an additional US$8 billion (approximately NT$237 billion), yet its completion date remains uncertain.

Only four of the Galileo program's projected 30 satellites have actually been put into orbit. According to the original plan, the Galileo is scheduled to commence operations in 2014, and the whole system to be completed by 2019. Both deadlines are likely to be missed, the 2014 launch in particular.

Critics say that Galileo is merely a European version of the American GPS system, which is already in widespread use in Europe, making the project unnecessary.

By 1994, when the EU first proposed the Galileo program, the American GPS system had already been in operation for more than 20 years. Initially, its promoters boasted that Galileo would be a certain moneymaker, but now it's known that even cost recovery will be difficult.

Europe hopes to use Galileo in its cars, missiles, planes, and ships to reduce reliance on the US GPS system. But ahead of the summit in February, British, German, and French leaders suggested cutting the program's budget.

The New York Times reported that the only reason for European leaders to support the Galileo system despite austerity policies was the idea of technical independence from the United States.

Taiwan's local governments respond positively to EV promotion
Under a slogan to create low-carbon living environment, Changhua County set the pace for increasing subsidies to increase the number of electric motorcycles in use in the county by 10 times this year. It also aims to become the first county in Taiwan to provide a union of roadside service stations for electric motorcycles. The measures aim to stimulate public willingness to embrace electric vehicles.

Magistrate Chuo Po-yuan said that Changhua County would bring together 159 motorcycle inspection stations and 56 motorcycle dealers to create the country's first union of electric motorcycle roadside service stations. In addition, the number of subsidized vehicles would be increased from 200 to 2,000, with a maximum subsidized amount for vehicle purchase now reaching NT$21,000. "The county government had allotted NT$16 million for public incentives to weed out electric motorcycles for reduction of carbon emission and energy consumption, said Liu Yu-ping, chief of the county's Environmental Protection Bureau.

Tsai Jia-yang, director general of the Changhua Environmental Protection Union, said that incentives for electric motorcycle use should also consider battery efficiency, duration, and recycling mechanisms. At present there are more than 40 battery-recharging stations in the county and the number is expected to increase by at least 200 stations in the future.

Tainan City is also pushing a greener future with promotion of its "Low-carbon Green-energy Smart EV Pilot Run Program." Under the program, the city is arranging electric vehicle test drives at tourist spots and industrial zones around the city.

Turning Greater Tainan into a green city is one of the keystone policies of Lai Ching-de, the first mayor of Greater Tainan since the city was created by merging Tainan City and Tainan County. To this end, the city government has mobilized resources to promote green energy-related industries.

According to the city's Economic Development Bureau, this program has enhanced the integration of local industry with smart electric vehicle systems. Under the program, which was launched in January 2012, the city will provide discount rentals of 125 electric vehicles to participating companies by the end of this year.

Turkey moves to boost automobile industry
In recent years, Turkish government has announced several measures to boost development of its automobile industry under the country's liberal economic policy, aiming to give Turkish cars a share in the world market.

Among the measures are incentives to encourage foreign carmakers to establish subsidiaries in Turkey. These include providing financial subsidies and high-tech workers, improving living standards of local people, sharing the experience of multinational corporations, lowering production costs, and offering advanced production facilities.

Of the 19 carmakers in Turkey, 14 are joint ventures with foreign companies such as Mercedes Benz, Ford, Fiat, Mitsubishi, and Peugeot. Turkey produces about 900,000 vehicles a year, of which around 75% are exported. The booming automobile industry has increased demand in Turkey for imports of auto parts and related materials.

To continue expanding their overseas sales, many auto plants are planning to expand capacity and introduce advance production technology. Only about 6.8% of Turkey's 68,000,000 people own cars, suggesting that the market has ample room to grow.

Despite low car ownership rates, the automobile sector is the third largest industry in Turkey after food and textiles.

U.S. carmakers call for retaliatory policy against weakening yen
An American carmakers association, which represents companies such as General Motors, called for retaliation against Japan's yen devaluation since Shinzo Abe became prime minister. The weaker yen is believed to hurt the competitiveness of US car exports.

Bloomberg reported that the American Automotive Policy Council (AAPC), whose members include Ford, GM and Chrysler, said in a statement that Prime Minister Abe has allowed the yen to devalue, making cars exported from the US relatively more expensive and less price competitive abroad.

Republican Matt Blunt, AAPC chairman, and former Missouri Governor, said in a statement: "We urge the Obama administration to state categorically to Japan that this policy is not recognized and may result in tit-for-tat measures".

US carmakers said that an undervalued yen not only distorts trade, but also stifles job growth in America's manufacturing sector. The AAPC appealed for Japan to be excluded from Pacific region trade negotiations with the US until it opened up its domestic market to foreign competition.

Japan's Abe has vowed to maintain pressure on the yen to address the problem of deflation and stimulate the growth of the world's third-largest economy. AAPC's Chairman Blunt criticized Japan's policy as a return to the 'beggar-thy-neighbor' policies of the past.

On the eve of Obama's second term, the AAPC wrote to demand that the issue of the damage to US interests caused by the dramatic devaluation of the yen be addressed. In 2010, the Obama administration bailed out two major carmakers, GM and Chrysler, and put the focus of US trade policy on Asia.

The AAPC called on Obama's government to put sanctions on Japan for its devaluation of the yen. Hirokazu Furukawa, spokesman for the Japan Automobile Manufacturers Association (JAMA), declined to comment on the matter, stating only that the association "hopes that the yen is valued at a reasonable level."