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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

Mazda, Mitsubishi, and Subaru expand global Takata recalls by 715k [UPDATE]

UPDATE: Subaru of America spokesperson Michael McHale tells Autoblog that the company is recalling 78,000 Imprezas from the 2004 and 2005 model years in the US. This is a national expansion of the company's previous regional recall for the Impreza. The Takata airbag inflator recall just keeps growing. The latest expansion encompasses 715,000 vehicles from Mazda, Mitsubishi, and Subaru. Many of the affected models are in Japan. The largest expansion from these three automakers comes from Mitsubishi. According to Reuters, the company is adding 100,000 vehicles in Japan and 412,000 outside of the country without identifying any specific regions. Mazda is issuing safety campaigns for 112,000 vehicles in Japan, and some of these include models that the company produces there for Mitsubishi and Nissan, according to Reuters. In statement to Autoblog (embedded below), Mazda said that it is still evaluating the situation in terms of a possible effect on the US. Finally, Subaru is calling in 91,000 Imprezas in Japan. At this time, it isn't clear whether Mitsubishi's or Subaru's expansions affect the United States, but Autoblog has reached out to them for more information. According to research by the National Highway Traffic Safety Administration, exposure to moisture can cause the propellant in these inflators to ignite too quickly and cause these dangerous ruptures. Takata has also been investigating the problem. Related Video: Mazda statement "We are aware of the NHTSA/Takata announcement, and are evaluating the effects of it on Mazda. As soon as we have had a chance to fully evaluate the situation – number of vehicles affected, age of those vehicles, where they're located, etc. – we will be able to share those details."

Mazda RT24-P brings KODO style to the Rolex 24 at Daytona

In addition to its new CX-5 crossover, Mazda revealed its new racecar, the RT24-P, at the Los Angeles Auto Show. The car has been designed for the Daytona Prototype international (DPi) class in IMSA's WeatherTech SportsCar Championship and will make its racing debut at the Rolex 24 at Daytona. It was designed using Mazda's KODO design language, which the brand has so successfully applied to its road-going cars. The racer's relation to Mazda's production cars is made obvious by the small five-point grille at the tip of the RT24-P's nose. While plenty of credit needs to go to the stylists and aerodynamicists at Mazda and Multimatic, one of the companies Mazda partnered with on the car, some of the credit needs to go to IMSA's new DPi rules for 2017. The new DPi class is very similar to the LMP2 class that it competes with in the WeatherTech series, with some noteworthy differences. The DPi class allows manufacturers to create unique bodies and engine packages for one of the four chassis available. The LMP2 class requires competitors to use the chassis companies' bodies, and are restricted to one engine package. View 14 Photos As for the powertrain, the Mazda RT24-P uses a turbocharged 2.0-liter four-cylinder that puts out roughly 600 horsepower. Mazda used the same engine in its P2-class race car last season. Mazda's body and engine will ride atop a chassis developed by Riley Technologies and Multimatic. You may remember that latter company as the one that developed the awesome spool valve shocks on the Chevrolet Colorado ZR2. The RT24-P will be campaigned by Speedsource, a company that has been racing Mazdas in American endurance racing for years, including last year's P2 cars. Considering Mazda's success in making such a cool race car, we're excited to see what other manufacturers do with the extra design freedom of the DPi class. Both Chevrolet and Ford competed last year in the WeatherTech prototype class with Daytona Prototype-style cars, and Honda competed with an LMP-style racer. Depending on what other makes decide, this year's WeatherTech line-up could have some nifty designs. Related Video: Related Gallery 2017 Mazda RT24-P race car View 9 Photos News Source: Mazda, IMSAImage Credit: Live photos copyright 2016 Drew Phillips / Autoblog Motorsports LA Auto Show Mazda Racing Vehicles Videos Original Video 2016 LA Auto Show