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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

Feds investigating Mazda CX-9 over suspension problems

The National Highway Traffic Safety Administration is opening a preliminary evaluation into the 2007-2008 Mazda CX-9 because the lower ball joint in the front suspension can potentially separate while driving. An estimated 54,000 examples of the crossover might be affected. The investigation was prompted by six complaints of this happening on the road. Because the complaints are coming more rapidly as of late, NHTSA thinks the issue could be getting worse. The problem also appears to be more prevalent in states that use salt on their roads in the winter. None of the failures caused any injuries, and all but one happened at 20 miles per hour or slower. NHTSA's preliminary evaluations "assess the scope, frequency, and safety consequence" of a potential problem and can sometimes lead to recalls. Related Video: INVESTIGATION Subject : Front Suspension Ball Joint Separation Date Investigation Opened: JUN 09, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15022 Component(s): SUSPENSION All Products Associated with this Investigation close Vehicle Make Model Model Year(s) MAZDA CX-9 2007-2008 Details Manufacturer: Mazda Motor Corp. SUMMARY: The Office of Defects Investigation (ODI) has received six (6) complaints (VOQs) alleging incidents of front suspension LBJ separation in MY 2007 through 2008 Mazda CX-9 vehicles. The reports appear to show an increasing trend. One of the separations allegedly occurred at 40 mph and the other 5 incidents occurred at speeds between 0 and 20 mph. The first VOQ was received in October 2013, followed by 2 reports in late 2014 and 3 reports in the first 5 months of 2015. Four of the VOQs are from states using high volumes of road salts (?salt states?) which, for purposes of this investigation, include: Connecticut, District of Columbia, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, and Wisconsin. The other VOQs were from northern Virginia, which borders the ?salt state? region, and South Carolina. ODI also identified EWR field report data related to the alleged defect in the subject vehicles. A preliminary investigation is being opened to assess the scope, frequency, and safety consequence of the alleged defect. The six VOQs associated with this investigation are: 10717510, 10714469, 10695142, 10668978, 10640541, and 10546535.

Toyota, Honda, Nissan and more collaborating to increase fuel efficiency

Toyota, Honda, Mazda, Nissan, Subaru, Mitsubishi, Suzuki and Daihatsu have announced an alliance that will see a push to improve fuel economy from both gas-powered and diesel-powered engines by as much as 30 percent before the end of the decade.
The newly assembled Research Association of Automotive Internal Combustion Engines put the roughly $20-million project together, with the Japanese government committing to half the cost while the eight manufacturers will chip in the rest.
According to Automotive News, the automakers will team up and share basic research on internal-combustion engines in a bid to cut costs. Eventually, the results of the research will find its way into a production vehicle, although it's unclear just when we'll see the fruits of this partnership on the road.