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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

2016 Mazda MX-5 Miata shows off perfect 50/50 weight balance

When I attended the first drive event for the Japanese-spec 2016 Mazda MX-5 Miata in Spain earlier this year, I was blown away – and not just by the car. I was blown away by the charts and graphs Mazda's engineers brought along, showing how every little facet of the ND Miata was finely tuned for pure driving perfection. It's like rocket science. Only cooler. One of the most important parts of the Miata package is its weight distribution. The 2,332-pound roadster must achieve a perfect 50/50 balance, with a driver inside. That's not easy. But it has to be done. Only the best for the Miata. In this video, Mazda shows off the Miata's balance by putting it on an aluminum balance beam, to see if the car stays perfectly centered. You can probably guess the outcome, but watching it all take place is super cool, especially with commentary by Mazda engineer Dave Coleman and MX-5 program manager Rod McLaughlin. How does the 50/50 balance help the Miata's handling out on the road? You'll have to wait until the embargo on driving impressions for the US-spec car lifts. We'll have the full scoop at 3:01 AM Eastern on Monday, June 1. In the meantime, get a sneak preview of the new Miata in the video below. Autoblog readers got a closer look at the 2016 MX-5 at our Cars & Coneys meet-up, and as you can see, the excitement for this car is definitely real.

Mazda previews 2016 Miata Global MX-5 Cup racer

At this point, we all know that the Mazda MX-5 Miata is a highly capable racing platform. Mazda even claims that the car is the most road-raced model in the world. Fittingly, then, the Japanese brand is making a huge announcement about the future of motorsport for its next-generation convertible. The MX-5 Cup is going worldwide in 2016 as the MX-5 Global Cup, and all of the racers are getting behind the wheel of the upcoming fourth-gen Miata, similar to the gorgeous redhead pictured above.
"It has long been our goal to see Mazda fans around the world competing in identical MX-5s, and the launch of the 2016 MX-5 Miata is the perfect time to make this goal a reality," said Masahiro Moro, Managing Executive Officer in charge of Global Sales, Marketing and Customer Service for Mazda in the company's announcement.
The racing version makes its grand debut at this year's SEMA show, although at the moment it's really more of a concept. Mazda confirms that the racer uses the 2.0-liter SkyActiv four-cylinder, but the other important parts like tires, suspension and safety equipment are not yet determined. The cars "will be sold ready to race from a single supplier," according to automaker's announcement for the series.