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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 announces Takata expansion in US to 472k vehicles [UPDATE]

Update: Mazda is revising the total number of vehicles affected by its Takata airbag inflator recall downward to 464,684 units, compared to the original NHTSA documents showing 472,056. According to Mazda Public Affairs Manager Tamara Mlynarczyk to Autoblog, "It is my understanding that Mazda Japan will be submitting a revised Part 573 on Monday that reflects our numbers." The company's official statement on the recall is now included below. Mazda is the latest automaker in the US to officially announce the details of its expanded Takata airbag inflator recall. The company is broadening its campaign to cover a total of 472,056 vehicles. Mazda's airbag inflator recall covers now the front driver's side for the 2003-2008 Mazda6 produced between May 29, 2002, and May 5, 2008, the 2004-2008 Mazda RX-8 from between April 10, 2003, and February 18, 2008, and the 2006-2007 Mazdaspeed6 made between August 4, 2005, and June 29, 2007. Among these three models there are 444,907 units affected. This is an expansion from of the previous total of about 330,000 examples from 2004-2008. The passenger-side airbag of the 2004-2006 B-Series pickup is also being recalled for those with build dates between April 17, 2003, and May 2, 2006. There are 27,149 of these vehicles in need of replacement parts. Takata's airbag inflator recalls have affected 34 million vehicles nationwide from 11 automakers. In a recent hearing before Congress, Takata said it was producing 740,000 replacement kits a month and hoped to grow that to a million. Other suppliers have also started making the parts. Related Video: RECALL Subject : Driver's Frontal Air Bag May Rupture Report Receipt Date: JUN 04, 2015 NHTSA Campaign Number: 15V345000 Component(s): AIR BAGS Potential Number of Units Affected: 444,907 All Products Associated with this Recall Vehicle Make Model Model Year(s) MAZDA MAZDA6 2003-2008 MAZDA MAZDASPEED6 2006-2007 MAZDA RX-8 2004-2008 Details Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2003-2008 Mazda6 vehicles manufactured May 29, 2002, to May 5, 2008, 2004-2008 RX-8 vehicles manufactured April 10, 2003, to February 18, 2008, and 2006-2007 Mazdaspeed6 vehicles manufactured August 4, 2005, to June 29, 2007.

Asian automakers still reluctant to use more aluminum

There's a logical progression of technology in the auto industry. We've seen it with things like carbon-ceramic brakes, which use to be the sole domain of six-figure sports cars, where they often cost as much as an entry level Toyota Corolla. Now, you can get them on a BMW M3 (they're still pricey, at $8,150). Who knows, maybe in the next four a five years, they'll be available on something like a muscle car or hot hatchback. Aluminum has had a similar progression, although it's further along, moving from the realm of Audi and Jaguar luxury sedans to Ford's most important product, the F-150. With the stuff set to arrive in such a big way on the market, we should logically expect an all-aluminum Toyota Camry or Honda Accord soon, right? Um, wrong. Reuters has a great report on what's keeping Asian manufacturers away from aluminum, and it demonstrates yet another stark philosophical difference between automakers in the east and those in the west. Of course, there's a pricing argument at play. But it's more than just the cost of aluminum sheet (shown above) versus steel. Manufacturing an aluminum car requires extensive retooling of existing factories, not to mention new relationships with suppliers and other logistical and financial nightmares. Factor that in with what Reuters calls Asian automaker's preference towards "evolutionary upgrades," and the case for an all-aluminum Accord is a difficult one. Instead, manufacturers in the east are focusing on developing even stronger steel as a means of trimming fat, although analysts question how long that practice can continue. Jeff Wang, the automotive sales director for aluminum supplier Novelis, predicts that we'll see a bump in aluminum usage from Japanese and Korean brands in the next two to three years, and that it will be driven by an influx of aluminum-based vehicles from western automakers into China. Only time will tell if he's proven right. News Source: ReutersImage Credit: Sean Gallup / Getty Images Plants/Manufacturing Honda Hyundai Mazda Nissan Toyota Technology aluminum