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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

Which car companies are creating new jobs in America?

Since January, automakers have announced investments totaling $9.5 billion in U.S. plants, creating or retaining more than 12,000 jobs. Some of those companies have yet to announce just how many jobs will be created given their investments, with the location of many of those jobs still to be determined. Specifically, the 4,000-job Toyota-Mazda joint venture plant still hasn't announced its location, with numerous states jockeying for it. Hyundai has plans to invest $1 billion but has not announced a jobs number yet. And likewise Ford is investing $1.2 billion in Michigan without specifying a number of jobs. Volvo this week announced plans to add a second line to its factory under construction in South Carolina, spending another $500 million and adding 2,500 jobs to the 2,000 it was already trying to fill. Then Thursday, Daimler announced a $1 billion expansion to its facility in Tuscaloosa, Ala., to produce EV batteries and electric SUVs, a move that will add 600 jobs to its hiring this year. Above, we've created a handy pie chart showing you which companies have announced new jobs and how many there will be. Reporting by Paul Lienert in Detroit News Source: Reuters Plants/Manufacturing BMW Chrysler Ford GM Honda Hyundai Mazda Mercedes-Benz Toyota Volvo jobs

Mazda hits Vegas with a pair of Sixes

Despite the fact that the annual SEMA show is more of an exercise in what "could be" than what "will be," it gives automakers the chance to stretch the legs of some of its most important models. Take the 2014 Mazda6, for example - it's hardly new, having gone on sale early this year - but this year's SEMA expo marks the first time Mazda has been able to show off the customization possibilities for its sleek midsize sedan. To that end, the Japanese automaker has arrived in Las Vegas with two very different takes on its sexy Six.
First up is the Mazda6 Club Sport you see above, wearing a "motorsports-inspired" gray, black and red accent-color scheme that, as Mazda says, is "represented in not-so-subtle angular lines reminiscent of a car speeding past your line of sight." The whole car is done up in a base color of Composite Grey, and uses a Brilliant Black roof to match the similarly colored front, side and rear diffusers, as well as the rear spoiler. Mazda has fitted the Club Sport with Rays 57 Motorsport G07FXX 20-inch wheels, wrapped in Yokohama 245/35R20 tires. Powering the CS is Mazda's 2.2-liter Skyactiv-D diesel four-cylinder engine (that we'll get in the standard Six early next year), and other changes include an H&R spring kit, larger Brembo brakes and a Racing Beat exhaust.
And then there's the Ceramic 6 Concept, pictured right. The name comes from the car's Ceramic White paint, though we don't really get the Taupe Silver accent stripes. Mazda says they're meant to mimic "the linear frequency patterns found on the likes of couture dresses and flowing fabrics," but it just looks a bit overwrought to us. The Mazda6 already has so many clean lines, why add more?