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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 CX-3 First Drive

If there's any doubt in your mind about the importance of B-segment crossovers, consider this: our review of the 2016 Mazda CX-3 arrives on your screen less than 24 hours after our first test of the 2016 Honda HR-V. Both of these vehicles are hugely important entries for their respective automakers. And while they take a similar shape and will compete head to head, the truth is, they're very different products. The HR-V is a knockout because of its excellent packaging and added versatility over Honda's own Fit and Civic. It's a wholly competent product, and we imagine it'll be one of, if not the best-selling vehicle in the class. In terms of being desirable for customers, it checks all the necessary boxes: frugal, functional, efficient, and affordable. Mazda takes a similar approach, but focuses instead on its key strength of offering cars that are great to drive, and look damn good. What's more, the CX-3 won't have to share showroom space as the HR-V does with the Fit – the all-new Mazda2 isn't slated for the US right now. Instead, the new CUV will serve as an entry point into the brand. Because of this, Mazda is betting big on the CX-3. That all starts with a product that's appealing to the eye. Design director Derek Jenkins says Mazda "didn't want to do the funky route" with its compact CUV – a nudge to the Nissan Juke and Fiat 500X, right there. Instead, the CX-3 uses the Kodo design language that Mazda has perfected since its production debut on the CX-5 in 2012. Across the board, the company's products look incredible, and the CX-3 is right at home amongst Mazda's latest beauties. Notice the long hood with a flowing character line that runs over the front fender and down the body side, chiseled off at the end with tight rear proportions and a small overhang. Huge arches draw focus to the premium 18-inch wheels found on our Grand Touring CX-3, but swallow up the 16-inch rollers used on lesser models. The glass area is kept to a minimum, but visibility from inside is still quite good. Details like the LED accents in the head- and taillamps look premium and aggressive. From all angles, this is an attractive crossover. It's a bold, dynamic entry in a class filled with cutesy, oddball, and bland designs. Underneath the CX-3 is the Skyactiv chassis found in the new Mazda2. At 168.3 inches long, 69.6 inches wide, and 60.7 inches tall, the CX-3 is smaller than the Mazda3 in every dimension except height.

2017 Mazda CX-9 Prototype First Drive

If you read our coverage from last week's Los Angeles Auto Show, you'll note that we were extremely fond of the new Mazda CX-9. We like the look of the thing, inside and out, and it promises to be the best-driving entry in the three-row crossover class. We agree wholeheartedly with that claim. You see, we already drove it. Full disclosure: Our test of the camouflaged CX-9 prototype you see here was short, and while we were able to get a good handle on the CX-9's basic driving dynamics, it'll take more than a 30-mile session around the outskirts of LA to uncover the finer details. What's more, these vehicles are not production ready. In fact, according to our handlers at Mazda, the CUV we tested was actually at the stage before pre-production – so basically, a pre-pre-production car. That said, all the details about the engine, transmission, suspension, and steering are "largely final." As you can see in the gallery, the cars we tested were heavily camouflaged both inside and out. As for styling, we love it – see the undisguised pictures from the LA show for more views. And as for inside, we can say leather seats of our Grand Touring model were comfortable and supportive, and the smallish steering wheel felt natural in the hand. Even in pre-pre-production state, the CX-9 was impressively quiet. An extra 53 pounds of under-floor sound deadening, thicker windows, and active noise cancellation all contribute to what Mazda claims will be "among the quietest vehicles in its class." It's worth noting that the good sounds, like the throaty, whooshy noises of the turbocharged engine, found their way into the cabin just fine. The 2.5-liter, turbocharged four-cylinder engine – Mazda's first force-induced Skyactiv engine – is an excellent piece. The 2.5-liter, turbocharged four-cylinder engine – Mazda's first force-induced Skyactiv engine – is an excellent piece. It uses a variable geometry turbocharger, which the company calls a Dynamic Pressure Turbo. Here's how Mazda explains it: Imagine a normal garden hose. Put your thumb over the nozzle, and the force of the water increases dramatically. That's the DPT at low rpms. It features three small exhaust ports to direct exhaust gases into the turbo, making for 17.4 quick-spooling PSI at low rpms. As the revs climb, a flow control valve opens up, redirecting the gases to a trio of larger ports – removing your thumb from the hose, if you will – and keeping the boost up.