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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 keeping non-hybrid, non-electric Skyactiv strategy

Mazda still thinks that it can buck the trend of adding those fancy batteries and electric motors to its cars. At least for a little while longer. Hopefully. Speaking to Auto Express recently, Mazda's European boss, Jeff Guyton, said that he expects his company's cars to be able to get a lot more efficient without resorting to any of that fancy electrification stuff. "I think there's at least 20-30 percent better fuel economy by the end of the decade," he said. He said that he expected to get to Europe's low target of 95 grams of CO2 per kilometer, "without any significant deployment of electrical drive." This part is all in line with Mazda's long-term Skyactiv strategy, as laid out back in 2011 and first mentioned publicly in 2010. Remember, this is the company that once proudly proclaimed, "Not Electric. Not Hybrid. Not A Drag To Drive." As explained back in 2011, Mazda hopes to wait until other automakers have done all of the heavy lifting on developing plug-in and hybrid tech so that when Mazda enters the market, things will be cheaper. Of course, Mazda has been quietly testing all-electric vehicles and Guyton said that there may be an Mazda EV at some point. "We are interested in electric technology and it will be in the distant future when it will be quite important," he told AE. "But we think it will take some time to be commercially attractive without tax payer-funded incentives." How much of a delay? Well, there is a gas-electric Mazda 3 hybrid available in Japan that uses some powertrain parts from the Toyota Prius, and we all know that the Prius has been around for ages. Maybe in 2025, Mazda will come out with a Leaf-based Mazda 2. Related Video: Green Mazda Fuel Efficiency Electric Hybrid skyactiv mazda skyactiv

Edmunds ranks the best used cars for 2013

When people ask us what car we would recommend for them, it's usually not easy to answer. To make a useful recommendation we must consider which of the numerous vehicle segments fits their needs best, and then choose one of the many vehicles offered in each segment. For some people, new cars don't meet their expectations of value, because they lose so much of it the moment they are purchased and driven off the dealer lot. For them, there's always the used-car market, where great deals can be found, but cars' histories of reliability and maintenance records - and perhaps that Certified Pre-Owned warranty - become ever-important factors playing into purchase choice.
To help out, Edmunds has done us the favor of assembling a list of the best used vehicles money can buy, covering model years 2006-2011, according to what it considers the most important criteria when shopping for used autos: reliability, safety, value and availability. That means unreliable, unsafe, super-expensive or limited-edition models don't appear on the list, but instead cars from each segment that are more likely to satisfy the general population.
There are some real goodies on the list, including but not limited to vehicles such as the capable Honda Fit, the cultish Honda Accord coupe (which can be had with a 240-horsepower V6 and a six-speed manual transmission some years), and the powerful Chevrolet Corvette. While Edmunds' choice of the Volvo C70 for best used convertible baffled us at first (not that it's a bad car), it redeemed itself by stating that the Mazda MX-5 still is an unofficial top choice if you don't require more than two seats.