• Kyodo

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The city of Anjo, Aichi Prefecture, home to many parts suppliers to Toyota Motor Corp., will offer its own perks for the purchase of ecologically friendly cars after government subsidies for buying the vehicles expires at the end of September, municipal officials said Thursday.

Anjo aims through its own subsidies to help prevent sharp falls in new-vehicle sales and corporate tax revenues after the expiration of the central government’s temporary economic stimulus steps.

Registered residents and companies with an office in the city will be eligible for the subsidies from the local government when they buy new environmentally friendly cars from a car dealer in the city, the officials said.

The local government will offer a subsidy of ¥100,000 per regular car and ¥50,000 per minivehicle with engine displacements of up to 660cc.

The subsidies will be available for the purchase of one car for a resident and five cars for a company. The program is basically the same as the central government’s, but Anjo’s requirements for cars to qualify are tougher.

The program is planned to last until the end of next March. The city plans to submit a supplementary budget request for about ¥160 million for the subsidies program at a municipal assembly meeting next month.

Other municipalities in Aichi Prefecture, including Toyota and Okazaki, have already been offering their own subsidies for the purchase of environmentally friendly cars. They also plan to extend the programs after the expiration of the central government’s subsidies.

Mazda recall widens

HIROSHIMA (Kyodo) Mazda Motor Corp. is recalling about 104,000 cars in Canada and Taiwan over possible problems with the power steering system, in addition to its recalls already filed in the United States and China, company officials said Thursday.

The recall of Mazda3 and Mazda5 vehicles is now at about 329,000 around the world, they said. Subject to the recall are model years 2007-2009.

Mazda also plans to recall or offer to repair voluntarily some 180,000 vehicles sold in Europe and Australia, the officials said.

The problem involves rust forming inside the hydraulic pump for power steering due to a defective part, possibly leading to a sudden loss of power steering assist, the officials said.

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