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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-5 [w/video]

It's difficult for me to get excited about crossovers. I try hard not to be the stereotypical car guy: ignoring the fact that the rest of the world loves these tall hatchbacks, while yelling, "station wagons make more sense!" until I've voided my lungs of air. Deep down I am that guy, but I work around it. Historically the Mazda CX-5 is one crossover that has been quasi-immune to my knee-jerking. It doesn't weigh two tons, offers a manual transmission (in poverty spec, but still...), and looks faster than its competitors. Most importantly, the CX-5 can round a corner without wobbling like a Slinky at the top of the stairs. No item on that list of plaudits would likely crack the top ten "desirables" for average small CUV shoppers. So, for the 2016 update, Mazda instead upgraded the in-cabin experience along with the requisite nips and tucks to the exterior. I borrowed a 2016 model CX-5 to see whether or not those concessions to comfort affected the car-nerd stuff. And to see if the Mazda could still be my go-to CUV recommendation. Driving Notes The engine options are unchanged for 2016. You can still have the fine, 2.5-liter four-cylinder engine, with its 184 horsepower and 185 pound-feet of torque, or its wimpier 2.0-liter lil' brother. My fully spec'd Grand Touring came with the bigger engine, which feels adequately powerful for the class, but not quick. In an era where turbocharged engines are everywhere, revving the Skyactiv 2.5-liter up to its torque peak at 3,250 rpm takes some commitment. I'm annoyed that there's no manual offered with the 2.5L (a combo I can have in both the Mazda3 and Mazda6), but I don't hate the automatic transmission. The six-speed unit is unobtrusive 99 percent of the time; something I regretfully can't tell you about certain nine-speed autos. There are no paddles to play with, but you can tap the shift lever up and down if you're struck by a need for total control. With a new center console and dash, and the addition of the Mazda Connect infotainment system, the '16 CX-5 feels like a new vehicle from behind the wheel. An attractive, pliant, leatherish material swaths the neat console and surrounding real estate. And the perforated leather seats feel damn near upscale. I think that Mazda Connect's version of the central control knob (with handy adjacent volume knob) is almost luddite-proof in its simplicity. There's no latency between twisting and reaction on the screen.

Mazda G-Vectoring Control makes driving better without you knowing

Mazda has just spent eight years developing a new technology that will make its new cars a lot more fun to drive, even if you have absolutely no idea that it's working. And subtlety's the point, Mazda engineers told us at a press event at Mazda Raceway Laguna Seca. In fact, the effects of what they've dubbed G-Vectoring Control are so fine that the marketing and PR teams are at a loss for how to do their jobs with it. "The engineers have done their work," said Mazda Director of Communications Jeremy Barnes, "But how do we get the message across?" The basic premise is this: G-Vectoring activates only when the car's on-board computer reads simultaneous steering and throttle input. The data — including throttle position, steering angle, and, crucially, how quickly you're adjusting the steering angle — are then funneled through an algorithm to reduce engine torque, which transfers vehicle weight, adding more grip to the wheels that need it. The system will appear first on 2017 Mazda6 sedans arriving in showrooms later this year, followed by the 2017 Mazda3. Actually, "subtle" does not even begin to describe the effect. G-Vectoring Control can detect as much as one tenth of one degree of steering angle, and changes the cornering forces only 0.1 to 0.5 g as a result. "That's less than the human body can feel," explained Vehicle Development Engineer Dave Coleman. In practice, G-Vectoring reduces the steering angle at turn-in, as well as the rate at which one turns the wheel. To demonstrate, Director of R&D Kelvin Hiraishi rode shotgun with us in a specially equipped Mazda6 that allowed him to turn G-Vectoring on or off at the push of a button (production cars will always have it on). Hiraishi had us drive a number of courses, including Mazda Raceway Laguna Seca itself, while an engineer measured our steering inputs with a laptop Matrix'd into the car's electronic brain. I drove the same course several times with the same car in the same conditions, with cruise control locked and the system turned on or off. Lo and behold, with G-Vectoring activated, the engineer's output graph showed that my steering inputs were indeed reduced ever so slightly. There were two times that G-Vectoring was markedly noticeable. The first on a turn with a minor banking toward the outside, and the second was during cornering over an artificially wet section of the course — in other words, when the car was at the limits of adhesion.