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Toyota and Mazda in talks to build joint US auto plant

UPDATE: The Toyota-Mazda deal has been announced. A newer version of this story appears here. Toyota Motor Corp and rival Mazda Motor Corp are expected to announce plans on Friday to launch a joint venture and build a new U.S. assembly plant, a person briefed on the matter said. A new auto plant would be a major boost to U.S. President Donald Trump, who campaigned on promises to boost manufacturing and expand employment for American autoworkers. Japan's Nikkei reported on Thursday that Toyota would take a roughly five-percent stake in Mazda Motor Corp to develop key electric vehicle technologies and jointly build a factory in the United States. The deal could be announced as soon as Friday, the newspaper said. The person briefed on the matter, who was not authorized to speak to the media and requested anonymity, confirmed the Japanese carmakers were planning to build a large plant in a yet to be determined U.S. location and planned future joint efforts on electric vehicles. The same source declined to offer further details, however. Toyota, in a statement, said the two companies have been exploring various areas of collaboration under a May 2015 agreement. "We intend to submit a proposal to our board of directors today regarding the partnership with Mazda, however, we would like to refrain from providing further comment at this time," Toyota said in a statement issued by its U.S. operations. Mazda said in statement that "nothing has been decided yet" and added the company "will have a board meeting on this matter today. We cannot comment any further." Toyota, the world's second-largest automaker by vehicle sales in 2016 and Japan's dominant car company, has been forging alliances with smaller Japanese rivals for several years, effectively consolidating the Japanese auto sector. A new U.S. assembly plant would likely become the prize in a fierce competition among Midwestern and Southern states eager to expand manufacturing jobs. Trump in January criticized Toyota for importing cars to the United States from Mexico. The Republican president also threatened to impose a hefty fee on Toyota if it were to build its Corolla cars for the U.S. market at a plant in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. But since January, Trump has praised Toyota for its U.S. investments.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

2017 Mazda Model Year Preview and Updates

Driving Matters, Mazda's marketing pitch, certainly resonates with enthusiasts, although may not be relevant with the increasing number of drivers engaged in texting while steering. Regardless of that disconnect, for drivers Mazda brings to market the long-awaited Miata coupe in Retractable Fastback (RF) form, pictured above. And for those wanting/needing a new crossover, Mazda redesigns its well-received CX-5. MAZDA3: Mazda's compact sedan and hatch receive a revised front end and tweaked rear. Inside, an upgraded interior with more storage space, improved sound proofing and materials round out the enhancements. On the road, all trim levels receive Mazda's G-Vectoring Control for enhanced handling and stability. MAZDA6: G-Vectoring Control is standard across all trims. Inside, improved sound insulation, new tech (including traffic sign recognition), and available Nappa leather takes an already upscale environment a few steps further into near-luxury. MAZDA MX-5 MIATA: The RF (Retractable Fastback) is the biggest news, as it serves as the answer to the long-awaited Miata coupe. Club models receive Blind Spot Monitoring and Cross-Traffic Alert – presumably helpful when the top is up. And the RF Launch Edition (1,000 examples) delivers a Nappa leather interior and hand-painted black top. The package is further embellished by Mazda's choice of Machine Gray metallic exterior color. MAZDA CX-3: Mazda's subcompact crossover receives minor updates. The Touring trim gets 18-inch alloy wheels, while the upmarket Grand Touring's available i-ACTIVSENSE is reduced in price. MAZDA CX-5: Mazda's compact crossover is all-new and on Mazda showrooms this spring as a 2017 model. Of particular interest to diesel fans is the introduction later in the year of Mazda's SKYACTIV-D 2.2 clean diesel, which arrives just in time for your Volkswagen buyback. MAZDA CX-9: Mazda's largest crossover is unchanged for 2017.