Oct 27th - Lithium Battery Sets Nissan's Fuga Hybrid Apart

Nissan Motor Co.'s Fuga Hybrid, a luxury sedan hitting the market next week, uses a lithium ion battery instead of the nickel-metal hydride batteries found in hybrids from Toyota Motor Corp. and Honda Motor Co.

Size for size, lithium ion batteries offer roughly double the power output of nickel-metal hydride batteries, helping to make hybrid and electric vehicles smaller and lighter. But high costs have kept lithium ion batteries out of hybrids so far, except for a handful of models from such luxury car makers as Daimler AG and BMW AG.

The hybrid system used in the Fuga Hybrid.

Nissan has teamed up with NEC Corp. in development and production of lithium ion batteries for hybrids and EVs. Together, they plan to raise their output capacity for these batteries to 500,000 units a year as early as fiscal 2012.

Lithium ion batteries will also power the automaker's Leaf all-electric car, due out this December. Nissan will thus likely be able to lower costs through economies of scale, helping it boost the popularity of its hybrids and EVs.

Equipped with a 3.5-liter gasoline engine, the Fuga Hybrid gets 19km per liter -- 90% better than the 3.7-liter gasoline-only Fuga and beating the hybrid version of Toyota's Crown luxury vehicle by 58%.

The Fuga Hybrid's high fuel efficiency is also owed to Nissan's proprietary hybrid system. By enabling the electric motor to take the vehicle up to around 80kph when the accelerator pedal is held down, the system has widened the range of speeds at which only the motor is needed, cutting down on gasoline use.

Oct 26th - Nidec To Supply Motors For Daimler's Eco-Friendly Cars

Nidec Corp. has launched production of motors for use in Daimler AG's Mercedes-Benz electric and fuel cell vehicles at a recently acquired U.S. plant.

The move is part of the electric machinery firm's efforts to go beyond its mainstay precision motors and stake out a larger presence in automotive motors.

Nidec absorbed the motors and controls business of U.S.-based Emerson Electric Co. earlier this month, obtaining the facilities that will handle output for Daimler. In addition to motors for Mercedes-Benz A-Class electric vehicles, Nidec will supply motors for Mercedes-Benz B-Class fuel cell cars.

If output volumes increase, Nidec will consider launching production at a plant in Mexico.

Nidec already manufactures several dozen types of motors used in automobiles, including those for power steering and engine cooling. It developed electric vehicle motors last year, paving its way into the field.

Nidec will produce motors for Daimler at a plant in the U.S.

The company has also decided to invest around 10 billion yen to construct a production base in India. It plans to break ground on the facility next year and begin operations there in 2012. In addition to automotive motors, the Indian plant will produce motors for consumer electronics, an area that continues to show growing demand worldwide.

Small precision motors currently account for about 50% of Nidec's overall sales, while automotive motors comprise a mere 5% or so. As demand for automotive motors grows, Nidec aims to lift sales from the segment to 500 billion yen in fiscal 2015, on par with its mainstay hard-disk-drive motors.

Oct 26th - Toshiba Uses Strong Yen To Its Advantage

Toshiba, one of Japan's biggest industrial groups, claims to have turned the strength of the yen - long the bane of the country's exporters - to its advantage.

The group, which sells everything from refrigerators to nuclear power plants around the globe, said on Monday that changes to its production strategy since 2009 - essentially by buying and building more outside the country - meant it had profited from the yen's rise in the first half to September.

The turnround is remarkable in a country where industrial groups are almost uniformly gloomy about the effects of the soaring currency.

On Monday, the yen was trading at about Y80 to the dollar, within a whisker of its all-time high of Y79.70 set in 1995.

At such levels Japanese-made products are hard to sell profitably in foreign markets, while the value of groups' overseas earnings shrinks drastically when reported to shareholders in yen. Toyota, for instance, expects currency swings to cut Y120bn from its operating income this year.

Yet Toshiba's experience suggests companies may be more resilient in the face of yen strength than is widely believed.

Speaking at a management forum, Norio Sasaki, Toshiba's chief executive, said it had launched a review of its operations last year called "Project 70," in which it postulated the effects of a rise in the Japanese currency to Y70 to the dollar.

"People said the yen would never go to that level when we came up with this plan last October, but looking at the weakness of the dollar and the strength of the yen now, that may not be too far from reality," he said.

Toshiba made 48 per cent of its products in Japan in the period from April to September 2009 and bought 45 per cent of its components from Japan-based suppliers. By the same period this year, the ratios were down to 44 per cent and 42 per cent respectively.

The change added Y4.2bn to Toshiba's operating profit in the half to September, or Y700m for each one-yen increase in the Japanese currency's value against the dollar. That compared with an Y800m loss on each increase last year.

Toshiba cautioned the reversal could prove temporary due to shifting sales and production cycles and said the yen's strength against the euro remained a burden.

Oct 26th - NSK, Toshiba Join Forces In Electric Power Steering

NSK Ltd. and Toshiba Corp. plan to co-develop electric power steering systems, combining the former's machinery technologies and the latter's electronics prowess.

The partners have established joint venture ADTech with a capitalization of 200 million yen, with NSK taking a 51% stake and Toshiba the other 49%.

This new firm will develop safety and power-saving features. NSK -- the world's second-largest manufacturer of electric power steering systems -- will handle the overall design and production, while Toshiba is expected to offer software. The goal is to commercialize the new products in 2013.

About 30 of ADTech's 60 employees are Toshiba engineers specializing in developing circuitry and software.

Around 40% of new vehicles worldwide have electric power steering -- a ratio expected to rise because these systems can help vehicles achieve 5% higher fuel economy than hydraulic power steering.

Toshiba is expanding its automobile-related business. It intends to boost the segment's sales from the 200 billion yen or so projected for fiscal 2010 to around 700 billion yen in fiscal 2015. The firm this year decided to supply motors for hybrid vehicles to U.S. carmaker Ford Motor Co. and reached an agreement with Mitsubishi Motors Corp.  to develop lithium ion batteries for electric vehicles.

NSK decided to tap Toshiba's know-how because of the growing importance of electronics in electric power steering.

Oct 25th - Marubeni to acquire Gulf Of Mexico oil fields from BP For $650mn

BP PLC said Monday it will sell four producing deep-water oil and gas fields in the U.S. Gulf of Mexico to Marubeni Oil and Gas for $650 million.

BP, in a statement, said the asset disposal could be completed by early 2011. Marubeni Oil and Gas is a unit of Japan's Marubeni Corp.

The disposal is part of a wider program BP initiated to shore up its financial position to deal with the fallout of April's Gulf of Mexico oil spill.

BP acquired the interests in the fields--Magnolia, Merganser, Nansen and Zia--from Devon Energy earlier in 2010. BP's net production from these fields is about 15,000 barrels of oil equivalent a day. In its statement, BP said the four fields "did not fit well with the rest of our business in the region."

Marubeni said in a statement it expects to complete the purchases by early next year unless an existing partner of the four wells exercises its pre-emptive right. A Marubeni spokeswoman declined to give details on pre-emptive right situations.

After the acquisition, Marubeni's production interests will total about 50,000 barrels a day of crude oil equivalent, up from about 35,000 barrels a day currently, the spokeswoman said.

Marubeni doesn't plan on buying more BP production stakes for the time being, she said.

BP shares in London traded up three-and-a-half pence at 431.85 pence at 1000 GMT.

25th Oct - DoCoMo To Release 3-D Smartphone

NTT DoCoMo Inc. is introducing about 20 new cell phones and seven smartphones for the winter 2010 and spring 2011 seasons, including Japan's first handset with 3-D capability.

The company is expanding its product lineup with sleek new models to try to stimulate consumer buying appetite and win in competition with Apple's iPhone, sold in Japan by Softbank Mobile Corp.

A new Sharp Corp. smartphone running on Google Inc.'s Android operating system will enable users to see 3-D images without special glasses.

Yodobashi Camera Multimedia Akiba outlet in Tokyo's Akihabara district: DoCoMo will bolster its smartphone marketing operations.

Other new cell phones in the pipeline will have upgraded features including being water- and shockproof in line with U.S. military standards. They are being developed by NEC Casio Mobile Communications Ltd., a joint venture between NEC Corp, Casio Computer Co. and Hitachi Ltd. . Casio technology used in its G-Shock brand watches will be applied to these new models.

DoCoMo will also release a touchscreen model with a Japanese cypress exterior in an attempt to win over environmentally conscious customers.

According to the Japan Electronics and Information Technology Industries Association, domestic cell-phone shipments totaled some 31 million units in fiscal 2009, about 60% of their peak in 2000.

Despite sluggish demand, Softbank continues to expand the number of iPhone subscribers.

KDDI Corp., which provides the au cell phone service, is also stepping up product development and will debut a smartphone with e-wallet functions in late November.

23rd Oct - Sanyo's Key Battery Plant To Up Capacity 10-Fold

Sanyo Electric Co. aims to boost output capacity of automotive lithium ion batteries at its new plant in Kasai, Hyogo Prefecture, 10-fold in 2015, while more than halving associated costs.

Sanyo President Seiichiro Sano spoke to reporters at the Kasai Plant on Monday.

The Panasonic Corp. group has positioned the facility as its core production base for green-car batteries. Its doors were opened Monday to the news media.

Sanyo launched operations at the plant last month with a monthly output capacity of 1 million units, targeting an increase to 10 million units in 2015. By tapping economies of scale, it will strive to slash production costs by at least half by then.

The five-story, roughly 41,400 sq. meter building was constructed with an investment of around 13 billion yen. It boasts energy-saving equipment including solar power generation systems. The facility will also be utilized as a testing ground for green technologies.

Sanyo is scheduled to supply lithium ion batteries to such automakers as Volkswagen AG and Toyota Motor Corp.

Sanyo's new plant in Kansai opened its doors to the media on Monday.

The firm is also looking beyond automotive applications, seeking to provide large lithium ion batteries to meet power generation needs at hospitals, residences and other facilities. It will target sales of around 100 billion yen in fiscal 2015 from the segment, with the goal of making it the fourth major pillar of its business after solar batteries, consumer-use batteries and automotive batteries, Sanyo President Seiichiro Sano said at a news conference Monday.

22nd Oct - Toyota To Start Making Prius In Thailand Next Month

Toyota Motor Corp. will begin manufacturing and selling its Prius hybrid in Thailand next month, the automaker's local unit said Thursday.

Toyota's local unit on Thursday announced plans to make and sell the Prius in Thailand.

Thailand will become the third country where the Prius is made, after Japan and China. Thai output will be sold locally and is expected at 8,400 to 12,000 cars a year, according to Toyota Motor Thailand Co.

The company will import batteries, motors and other key components from Japan free of duties as part of a deal with the Thai government, which is waiving the usual 5% tariff to attract foreign hybrid makers. After tax incentives, a Thai-made Prius will sell for around 1.3 million baht, or about 3.5 million yen, the company says.

The Prius will be the second Toyota hybrid made in Thailand. Production of a hybrid version of the Camry sedan began here last year.

In January, Thailand and five other founding members of the Association of Southeast Asian Nations eliminated tariffs on cars imported from each other, on the condition that at least 40% of the parts are procured locally. Thai-made Priuses are likely to contain a far lower proportion of local parts, and Toyota plans to sell them only in Thailand for the time being.

Oct 22nd - 70% Of Japan Firms In Asia, Oceania To Report Profit In FY10

About 70% of Japanese companies with operations in the Asia-Oceania region are expected to post an operating profit for fiscal 2010, according to an industry survey.

The survey released Thursday by the Japan External Trade Organization, or JETRO, also showed that more than 60% of the respondents expect their operations to expand over the next year or two.

The results highlight how Asia has helped drive a marked recovery in their earnings.

On management challenges, more than half of the respondents listed higher wages and intensifying competition. Wages rose 14.2% in Vietnam, 13% in Myanmar and 12.1% in China. They also climbed more than 10% in three other nations.

The survey targeted Japanese companies operating in 18 Asian and Oceanian economies, with about 3,500 firms responding.

Oct 22nd - Hitachi's 1st-Half Operating profit revealed as Y200bn (2.4 bn USD)

Hitachi is expected to report a group operating profit of more than 200 billion yen for the April-September fiscal half, up from the 170 billion yen profit it projected earlier.

The company booked an operating loss of 24.7 billion yen for the same period last year.

Hitachi is seen posting the biggest first-half group operating profit among major electronics manufacturers in this year's reporting season.

Driving profits were subsidiaries that handle high-function materials, such as Hitachi Chemical Co. and Hitachi Metals Ltd. 

On the back of brisk sales at major customer Nissan Motor Co.  demand for electrical components, control equipment and other automotive equipment grew. In addition, construction machinery sales have been on the rise in emerging markets.

The electronic parts business was likely profitable to an extent despite the fallout from the strong yen. And thanks to cost-cutting efforts, earnings improved in the home appliance division, which had been unprofitable.

A decrease in money-losing operations has made it easier for Hitachi to generate profits.

For the October-March second half, sales of hard-disk drives and other electronic devices are seen losing momentum. And uncertainties surround the growth businesses of social infrastructure and telecommunications systems.

Oct 21st - Panasonic aiming for $35 billion green business by 2018

Panasonic Corp. has announced Green Plan 2018, a multifaceted environmental action plan to be executed by 2018, the year in which it will celebrate its 100th anniversary. By implementing the plan, Panasonic will establish a green energy business with 3 trillion yen (US$ 35billion*) in sales, declared Fumio Ohtsubo, president of Panasonic.

* Original figures are in Japanese yen. The exchange rate is roughly US$1=85 yen.

Fumio Ohtsubo, president of Panasonic, shows the company's very first product, a light bulb socket adaptor—the seed from which the consumer electronics giant grew.

Green Plan 2018 calls for a 120-million-ton reduction in CO2 emissions in the final year of the plan, derived from operations and power-saving products, compared with Panasonic's simulation of what CO2 emissions would be if the company had adopted a business-as-usual approach to emissions from 2005 onward.

The plan also includes actions to improve Panasonic's environmental performance with respect to resource recycling, water consumption, the impact of chemical substances, and conservation of biodiversity. The worthy environmental philosophy Panasonic advocates is only half the story: the red meat is a tough-minded business plan that aims to expand sales of green-related businesses bundled as the "energy systems business" to 3 trillion yen by 2018, which will account for about 30% of Panasonic's sales target for that year.

"I believe what sets Panasonic apart from other global contenders is our unique capability to propose energy management solutions for the entire home, building and town," said Fumio Ohtsubo, president of Panasonic.

As if to highlight this capability, at the CEATEC show now underway at Makuhari, Panasonic is demonstrating its SEG (Smart Energy Gateway) system for smart management of power generation, storage and consumption. The company is positioning SEG at the heart of its budding green business.

Right on cue, completion of the absorption of Sanyo Electric and Panasonic Electric Works by a TOB that closed on October 6 allows Panasonic to secure technologies and products it needs for developing a business based on its "entire home" concept in Japan.

"For the Japanese market, we can grow our business using Sanyo and Panasonic Electric Work's platforms. For global development, it is important to select the right partners," said Ohtsubo.

Panasonic has already started field testing a home energy management system linked to a smart grid in a collaborative project with Danish energy company SEAS-NVE.

Oct 21st - NTT Data To Buy U.S. IT Firm For Y100bn (1.2 bn USD)

NTT Data Corp. has decided to acquire U.S. IT service provider Keane Inc. in a deal estimated at slightly more than 100 billion yen.

The two companies are in the final stages of negotiations, working toward reaching an agreement by the end of the month.

A Citigroup Inc. investment unit currently owns a roughly 50% stake in Keane, with the remainder held by the Boston-based firm's executives and employees. NTT Data will purchase all outstanding shares and take control of the company, marking its biggest acquisition to date.

The purchase will provide NTT Data access to blue chip clients in the U.S., including manufacturers and financial institutions, as well as Keane's R&D bases in India and elsewhere.

NTT Data has set a goal of lifting its overseas sales to 300 billion yen in the year through March 2013, up from roughly 70 billion yen in fiscal 2009.

Japanese companies increased acquisitions of foreign businesses by 20% on the year in the January-September period. Making the most of their rich cash reserves and the stronger yen, more Japanese firms will likely turn to overseas mergers and acquisitions to propel global expansion. As of March 31, domestic nonfinancial private-sector businesses held a total of 203 trillion yen in cash reserves.

21st Oct - Toshiba's Westinghouse To Buy Out Nuclear Fuel Unit

Toshiba Corp. subsidiary Westinghouse Electric Co. decided Wednesday to acquire all of Tokyo-based Nuclear Fuel Industries Ltd. in 2012.

The buyout comes amid a surge in planned nuclear power plant construction worldwide.

Westinghouse owns 52% of the uranium processing company and will acquire the remainder from Furukawa Electric Co. and Sumitomo Electric Industries Ltd, which each hold 24% stakes.

The three shareholders have yet to discuss pricing and other aspects of the deal. Westinghouse paid around 10 billion yen last year for its majority interest in the unit.

Westinghouse operates nuclear-fuel processing facilities in the U.S. and Sweden. It plans to make Nuclear Fuel Industries its Asian base for fuel production and move ahead with joint procurement of parts and materials. The two firms will also strengthen cooperation on maintenance and other services for nuclear power plants.

Nuclear Fuel Industries turns powdered uranium into fuel rods for Japanese power plants. Annual sales total about 20 billion yen. It is the only processor in Japan that makes fuel for both pressurized-water reactors and boiling-water reactors.

Oct 20th - Japanese Government to offer tax breaks to attract Foreign Companies

To convince more foreign firms to set up operations in Japan, the government is considering plans to offer corporate tax breaks that would lower their effective rates to 25-30%.

This comes alongside government and ruling bloc discussions toward reducing the current effective corporate tax rate of 40% by around 5 percentage points as a way to revitalize business activity. By offering an even larger break to overseas companies, bringing the rate closer to those in other major markets, the government hopes to woo them to Japan.

Drugmakers and other overseas companies that set up R&D operations in Japan would be eligible for an effective corporate tax rate of 25-30% for five years.

The growth strategy that the government unveiled in June places a priority on encouraging foreign firms to invest here. A council tasked with promoting investment is expected to unveil comprehensive measures in November.

Corporate tax breaks are set to be a key component of these measures. Under a proposed plan, overseas companies that set up R&D operations and other core bases in Japan would be eligible for an effective corporate tax rate of 25-30% for a period of around five years. Firms boasting advanced technologies in the medical and biotech fields, among others, are expected to qualify.

The specifics have yet to be fleshed out, including whether to grant the tax breaks to foreign companies that acquire Japanese businesses.

The government also plans to offer subsidies that firms can use to lease office space and acquire property. And by easing visa requirements for highly skilled workers, Japan will strive to create a favorable working environment for foreigners.

Competition among Asian countries is heating up as governments seek to attract investments from abroad. South Korea currently offers income tax breaks to foreign engineers, while China has established special tax incentives to manufacturers holding advanced technologies.

By contrast, Japan has seen an exodus of overseas companies. According to a Ministry of Economy, Trade and Industry survey, 125 foreign firms exited Japan in fiscal 2008.

Oct 19th - Eco-Car Batteries Driving Tectonic Shift. Toyota, Sanyo, Panasonic

As the growing popularity of hybrid and electric vehicles makes batteries a crucial car component, the need for reliable supplies of high-performance batteries has been fueling reorganizations of the automobile, materials and electronics industries.

Sanyo's lithium ion battery plant in Hyogo Prefecture.

Such tectonic shifts were recently illustrated by Toyota Motor Corp.'s decision to use Sanyo Electric Co.'s lithium ion batteries in its strategic Prius minivan, a hybrid due for launch early next year.

The move marks a major departure from the leading carmaker's past practice. Toyota has fitted its Prius lineup with nickel-metal hydride batteries ever since the first generation in 1997.

After having developed and produced hybrid-car batteries with Panasonic Corp. it was a big decision for Toyota to turn to an outsider for the key component -- even considering that Sanyo will become a 100% unit of Panasonic next spring. But switching to lithium ion batteries will bring benefits that outweigh the risk, since they are more powerful and smaller -- enabling Toyota to bolster the fuel economy and interior sizes of its hybrid vehicles.

Today, Sanyo is the global leader in lithium ion batteries. In the green-car battery category, the company now counts Suzuki Motor Corp, Ford Motor Co. and Volkswagen AG among its customers.

Toyota, however, had set its sights on Sanyo much earlier. Back around 2005, when Sanyo was facing financial difficulty, Toyota asked the firm for a factory tour, with the aim of assessing the company's technologies.

Looking back, a Toyota executive confides, "We very much wanted Sanyo's battery technologies." After careful analysis, the automaker concluded that "Sanyo is valuable enough to warrant an acquisition," the executive says.

Even though the management turmoil at Sanyo back then ultimately kept Toyota from making an overture, Sanyo's value as an acquisition target remained intact.

In fact, Panasonic is about to fully acquire Sanyo through a tender offer. Panasonic will have spent over 800 billion yen on the purchase by the time it converts Sanyo into a wholly owned unit.

Panasonic reckons the investment will pay off. Sanyo is expected to play a key role in Panasonic's plans to lift sales in the environment and energy fields roughly sixfold to a whopping 3 trillion yen by fiscal 2018. Toward this goal, the two companies aim to work together to ensure that they will secure the leading position in the increasingly important market for hybrid- and electric-vehicle batteries.

Oct 19th - Japan Smart-Grid Project May Help Spawn New Export Industry

The smart grid that Okinawa Electric Power has begun operating on the island of Miyako-jima holds tremendous value for Japanese companies because it can verify technologies they can apply to develop businesses overseas.

The government is trying to nurture smart-grid technologies as a new export industry. In fact, the pilot smart grid on Miyako-jima is a steppingstone to verification projects in the West, in which the Japanese government will help domestic companies participate.

The load-leveling control system for Miyako-jima's grid was developed by Toshiba Corp. while the sodium-sulfer storage battery complex was developed by NGK Insulators Ltd.  and the panels for the solar power system were developed by Sharp Corp.  Kyocera Corp. and Kaneka Corp.

Because nations have different standards and specifications for their power infrastructures, Japanese companies have focused their smart-grid efforts on the domestic market. But this has raised concerns that the firms may miss opportunities in what is expected to be the rapid installation of next-generation power infrastructure in Europe, which is introducing wind power and other renewable energy sources, and in the U.S. and newly emerging economies, where demand for electricity continues to expand.

The Miyako-jima project is a way for Japanese companies to test their smart-grid technologies domestically. But the Japanese government is also supporting their efforts to expand the business abroad.

For example, it will support the construction of a test facility in the U.S. state of New Mexico, where 19 Japanese firms will participate starting in fiscal 2011. And it will back the participation of Japanese firms in verification experiments to be conducted in Spain and France.

Oct 19th - Smart Grid Goes Live On Okinawa Island (Toshiba)

-In a significant first for Japan, Okinawa Electric Power Co. has begun operating a smart grid to control the supply of renewable-energy-derived electricity for the 55,000-strong population of the remote Okinawa Prefecture island Miyako-jima.

Okinawa Electric operates a large solar power facility.

The launch on the island is important because it marks the nation's first autonomous system of smart-grid infrastructure that uses massive storage batteries to stably supply electricity by offsetting wild fluctuations in the production of solar and wind power.

The infrastructure Okinawa Electric is operating links the existing power grid to a 4mw solar power plant and a sodium sulfur (NaS) battery complex capable of storing 4mw of power. Some lithium ion batteries have also been installed.

The utility spent 6.15 billion yen on the infrastructure, two-thirds of which was subsidized by the central government.

Toshiba Corp.  manufactured the load-leveling control system and other major components of the grid. The storage batteries were supplied by NGK Insulators Ltd.

In addition to controlling the supply of power to the grid from the new solar power plant, the system also controls power from existing 4.2mw wind farms situated on Miyako-jima.

Up until now, Okinawa Electric has leveled the load to the grid from the wind farms by increasing and decreasing the fuel burned in a thermal power plant. By switching to the use of storage batteries and other smart-grid technologies, the company will be able to increase its use of renewable energy resources on the island without increased dependence on the thermal power plant.

The government plans to subsidize the installation of solar power systems in Japan and achieve a more than 10-fold increase in generation capacity to 28,000mw in 2020. Smart-grid technologies are essential if this renewable-energy-derived electricity is to be supplied in a stable way to the national power grid.

Oct 19th - Japanese Hospitals Aim To Shorten Cancer Drug Trials

A total of 377Japanese  hospitals nationwide will later this year join forces in an effort to halve the time needed to conduct clinical trials for cancer drugs.

The collaboration will include jointly conducting tests and standardizing procedures. The National Cancer Center will head the effort, supported by hospitals designated by the government as playing a key role in treating cancer patients.

Currently, clinical trials for cancer drugs typically take two to three years in Japan. Because of the long wait, Japanese patients are sometimes unable to get treatments already available overseas.

18th Oct - New Electric Vehicle sharing service from Orix Auto and Nihon Unisys

Coat-tailing on the twin trends of shared rental cars and  electric vehicles (EV) going mainstream, Orix Auto and Nihon Unisys have formed a group to start an EV car sharing service in Osaka. The new service will start with 12 Nissan Leaf cars this year, and expand to at least 50 units by 2013. Rental rates have not yet been decided, but in other areas where car-sharing is popular, the rates typically run around JPY6,000/month.

15th Oct - Eco-Car Batteries Driving Tectonic Shift

As the growing popularity of hybrid and electric vehicles makes batteries a crucial car component, the need for reliable supplies of high-performance batteries has been fueling reorganizations of the automobile, materials and electronics industries.

Sanyo's lithium ion battery plant in Hyogo Prefecture.

Such tectonic shifts were recently illustrated by Toyota Motor Corp.'s decision to use Sanyo Electric Co.'s  lithium ion batteries in its strategic Prius minivan, a hybrid due for launch early next year.

The move marks a major departure from the leading carmaker's past practice. Toyota has fitted its Prius lineup with nickel-metal hydride batteries ever since the first generation in 1997.

After having developed and produced hybrid-car batteries with Panasonic Corp. it was a big decision for Toyota to turn to an outsider for the key component -- even considering that Sanyo will become a 100% unit of Panasonic next spring. But switching to lithium ion batteries will bring benefits that outweigh the risk, since they are more powerful and smaller -- enabling Toyota to bolster the fuel economy and interior sizes of its hybrid vehicles.

Today, Sanyo is the global leader in lithium ion batteries. In the green-car battery category, the company now counts Suzuki Motor Corp. Ford Motor Co. and Volkswagen AG among its customers.

Toyota, however, had set its sights on Sanyo much earlier. Back around 2005, when Sanyo was facing financial difficulty, Toyota asked the firm for a factory tour, with the aim of assessing the company's technologies.

Looking back, a Toyota executive confides, "We very much wanted Sanyo's battery technologies." After careful analysis, the automaker concluded that "Sanyo is valuable enough to warrant an acquisition," the executive says.

Even though the management turmoil at Sanyo back then ultimately kept Toyota from making an overture, Sanyo's value as an acquisition target remained intact.

In fact, Panasonic is about to fully acquire Sanyo through a tender offer. Panasonic will have spent over 800 billion yen on the purchase by the time it converts Sanyo into a wholly owned unit.

Panasonic reckons the investment will pay off. Sanyo is expected to play a key role in Panasonic's plans to lift sales in the environment and energy fields roughly sixfold to a whopping 3 trillion yen by fiscal 2018. Toward this goal, the two companies aim to work together to ensure that they will secure the leading position in the increasingly important market for hybrid- and electric-vehicle batteries.

16th Nov - Sharp, Sanyo Introducing Cutting-Edge Solar Cells

Sharp Corp. and Sanyo Electric Co. plan to release new solar cells with a higher efficiency than those now on the market, it has been learned.

By the end of the year, Sharp is expected to spend as much as 10 billion yen on its Sakai plant in Osaka Prefecture to build new production lines with a total production capacity of 200,000kw annually. That would increase the firm's total capacity to 1.07 million kilowatts.

Silicon crystals are used in the photovoltaic solar cells. The electrodes, which generate the electricity, are attached to the back of cells rather than their surface. This increases the area of the cells that absorb sunlight and boosts generating efficiency by one-fifth over conventional cells to more than 20%.

Sanyo, meanwhile, is scheduled to release a new solar cell in February that is expected to have the world's highest efficiency. The new product is a HIT (Heterojunction with Intrinsic Thin-layer) cell composed of thin-film silicon laid atop silicon crystal. The new technology reduces energy loss when electricity passes through cells by smoothing out the area where the film and crystal meet. The cells boast a power generation efficiency of 21.6%, half a percentage point higher than the company's current top-performing cells. The new product will put Sanyo back on top in the efficiency race for the first time in six years, beating U.S. firm SunPower Corp.'s product, at 21.4%.

Sanyo's new solar cell will be made by subsidiary Shimane Sanyo Electric Co. and Sanyo's Nishikinohama plant in Kaizuka, Osaka. Early next year, Sanyo will set up a new production line at its plant in Otsu, Shiga Prefecture.

In fiscal 2011, the company aims to sell new-model solar cells with a total generating capacity of about 55,000kw, bringing its total for the solar cell business to some 600,000kw annually.

In fiscal 2013, it hopes to start making solar cells with a power generation efficiency of 23% at a plasma panel display plant in Amagasaki, Hyogo Prefecture that is owned by parent company Panasonic Corp.

11th Oct - Toyota Hopes Energy Efficiency will 'Light Up' it's Housing Operations

Toyota Motor Corp. is looking to beef up its home-building business by focusing on energy efficiency.

The centerpiece of its strategy is its new energy management system, which lets residents better control their electricity consumption, in their houses and when charging electric cars.

At a press conference on Tuesday, Toyota Senior Managing Director Nobuyuki Kodaira unveiled the energy management system, saying it was Toyota's answer to the problem of global warming. The carmaker is "responding to the environmental challenge by linking Toyota's car- and house-making businesses," he said.

The system, called Toyota Smart Center, tracks home power consumption, including any plug-in hybrid or electric cars being recharged. The system can help households reduce their carbon dioxide emissions by 75%, according to a Toyota executive. The company plans to bring the system to market in 2012.

Japan's largest carmaker is hoping its green technologies boost the sales of Toyota Housing Corp., its home-building subsidiary.

All in the family

Toyota Housing President Senta Morioka, who was also at Tuesday's press conference, said the energy management technology will help his company compete with bigger rivals.

Toyota recently integrated its home building operations within Toyota Housing. By bringing Toyota's housing manufacturing, marketing and technology development under one roof, Toyota Housing has become a full-fledged home builder.

Toyota unveils its newly developed household energy management system, which is expected to hit the market in 2012.

Toyota Housing has also become the leading shareholder of Misawa Homes Co. holding a 27.8% stake in the firm.

Toyota's housing business is a legacy of the founding family, and the automaker's effort to bolster the unit has shifted into a higher gear since Akio Toyoda, a member of the family, took the helm last year.

The business dates back to the era of Toyoda's grandfather, Kiichiro, who virtually founded the automaker and began building concrete houses in a quest to provide fire-resistant housing to Japanese home-buyers.

In 1975, Shoichiro Toyoda, Akio's father, led Toyota's entry into the home-building market by setting up a housing division within the company.

Looking for a spark

The new age of smart grids and electric cars offers Toyota an opportunity to find synergies between its vehicle and home-building businesses. The commitment of the Toyota group to the effort is underscored by the stakes that nine group companies, including Denso Corp, Toyota Industries Corp and Aisin Seiki Co, have acquired in Toyota Housing. On Oct. 1, they bought a combined 12% of the unit.

After many years of struggling to increase its presence in the market, Toyota Housing definitely needs the support.

With annual sales of slightly more than 4,000 detached houses, Toyota Housing is not among the biggest players in the industry. Sekisui House Ltd, the nation's No. 1 home-builder, sells 15,000 units per year.

The outlook for the market is harsh, with new housing starts in the year through March at a 45-year low. Fewer children and an aging population spell trouble for the industry.

Toyota Housing President Morioka believes the reorganization will speed up the company's decision-making. But the move to combine manufacturing and marketing is hardly revolutionary.

Rivals appear unconcerned about a challenge from Toyota. Toyota Housing certainly has ample management talent, but the firm is not yet a formidable competitor in terms of sales muscle or product quality, said a senior executive at a major home-builder.

In order to grab business from bigger rivals, Toyota Housing is trying to emulate Misawa Homes. Toyota Housing Chairman Teiji Tachibana, who also serves as Misawa's chairman, is pushing the unit's executives to gain marketing and technological expertise from Misawa. Backed by the firepower of the Toyota group, Toyota Housing has a shot at becoming a serious challenger to the market leaders, analysts say.

10th Oct - Panasonic and 32 other Japanese companies to Share Biodiversity Standards

Panasonic Corp and 32 other companies plan to adopt a shared set of guidelines for assessing the impact of their factories and office buildings on local ecosystems.

This effort, part of a growing movement towards conservation in the private sector, comes amid rising social awareness of how companies treat the environment.

The Japan Business Initiative for Conservation and Sustainable Use of Biodiversity includes architectural firm Takenaka Corp., Mitsui Sumitomo Insurance Co., Kao Corp, Ricoh Co. and Teijin Ltd.. It aims to eventually include all of the business world.

The organization has created an 18-category assessment method that assigns corporate facilities a score of up to 100 points. An office or factory can get the full score of 10 points in the category of green space, for example, if at least 40% of the property is covered by vegetation. Other categories assess whether facilities are using local varieties of plants or the right mixture of trees and shrubs.

Panasonic's facilities received 20-something to upwards of 50 points when the standards were applied on a trial basis. The company says the assessment uncovered many areas for improvement, including the slopes of the banks for its artificial ponds.

In addition to taking their own steps to protect the environment, a growing number of companies are pressuring client firms to do the same.

Japan will from Monday host a series of meetings in Nagoya about the Convention on Biological Diversity. Some 8,000 participants from 193 countries and territories will gather to set goals for protecting wildlife and a protocol for distributing profits from plant- and animal-derived products. Parties to the treaty will meet from Oct. 18 to seek a consensus on the goals and the protocol. Prime Minister Naoto Kan is scheduled to speak on the first day of a ministerial conference for treaty states starting Oct. 27.

The world loses about 40,000 varieties of plants and animals through extinction every year, by some estimates. Without effective steps to protect the ecosystems in the next decade, the damage could become irreparable, scientists say.

7th Oct - Softbank Wins Subscriber Crown For 6th Month In Row

Softbank Mobile Corp. said Thursday it gained 332,600 new subscribers on a net basis in September, taking the top spot among mobile carriers for the sixth straight month.

The Softbank Corp. group firm continued to see strong sales of Apple Inc.'s iPhone 4 smartphone. Softbank Mobile is the exclusive mobile service provider for the iPhone.

Softbank Mobile's subscriber base grew at a record monthly pace, excluding the month of March, which is the busiest month for sales.

For the April-September half, the company gained a total 1.598 million new subscribers on a net basis, a record high for a fiscal half.

NTT DoCoMo Inc. came second with 109,400 new subscribers. Its net gain was smaller than a month earlier, because more and more DoCoMo subscribers shifted to rival carriers, due partly to the popular iPhone, according to the company.

KDDI Corp. placed third, gaining a net 91,400 new subscribers.

Coming in fourth was eAccess Ltd. an affiliate Emobile Ltd. with 68,500.