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Demise of kei cars on the horizon?

The kei car has long been a staple of the Japanese automobile industry and its car culture. Too diminutive for Western markets, the tiny cars and trucks are a strong influencer of design in Japan. Now, as The New York Times reports, the Japanese government has hit kei cars with increases in sales tax, gasoline prices and has reduced the kei car tax break introduced to make the cars popular in the first place by 50 percent.

Report backs Scottish pay-as-you-drive

SCRAPPING FUEL DUTY and car tax in Scotland and replacing them with a pay-as-you-drive system has been suggested by an independent think tank. The scheme would help reduce emissions, cut congestion and increase fairness, Reform Scotland said. The organisation has produced a report on the idea, calling for the Scottish Government to launch a feasibility study on a national and local scheme in which central government would "price" motorways and trunk roads and local authorities would "price" local roads.

General Motors partners with battery supplier LG on electric vehicles

General Motors said Thursday that it is partnering with its battery cell supplier, LG Group, to develop electric vehicles. The agreement, signed Wednesday by GM CEO Dan Akerson and LG President Juno Cho, will “help GM expand the number and types of electric vehicles it makes and sells,” the automaker said in a statement. It's the second example this week of automakers looking for partners to help in developing more fuel-efficient cars, as U.S.