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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

Mazda3 Skyactiv-Hybrid and CNG Concept shown in Japan

Mazda has received a tremendous amount of public and industry praise in the last few years, following up the successful introduction of its Skyactiv technology (powertrain and otherwise), with strong products like CX-5, Mazda6 and most recently, the Mazda3. At the Tokyo Motor Show, Mazda has taken yet another step forward with Skyactiv and the 3, showing the compact (called "Axela" in Japan) with an all-new compressed natural gas engine in the Skyactiv-CNG Concept.
The end result of the Skyactiv-Hybrid is fuel consumption estimated at something like 74 miles per gallon.
Mazda thinks that CNG-powered vehicles are due for an uptick in demand, and the company believes this new powertrain will add valuable breadth to the Mazda3 range. The CNG Concept is actually a duel-fuel vehicle, capable of running on either natural gas or gasoline. In fact, we're told that the high compression ratio (14:1) inherent in Skyactiv-technology gasoline engines makes conversion to CNG particularly simple.

2015 Mazda2 spotted in Japanese magazine

The styling changes at Mazda are proceeding at a fairly quick tempo. The CX-5 was unveiled, followed by a refreshed CX-9, the excellent Mazda6, and most recently a new Mazda3. This all happened over the course of less than two years, which in the auto industry is like a long week.
Now the Mazda2 is getting its revamp. Thanks to a magazine scan from Japan, we now have our first look at the new sub-compact, called the Demio, in its home market. Mazda's familial front end has been fitted, and it doesn't look quite as suited to the smaller car. Lacking the long-hood look of the Mazda3 and Mazda6, the new styling looks overly rounded, almost bulbous from our angle. It's still attractive, but the shape is kind of off-putting compared to the chiseled faces of the 2's big brothers. We'll concede that the folded magazine page may have something to do with it, however.
The next-generation 2 should adhere to Mazda's Skyactiv philosophy, which means we can expect a highly efficient four-cylinder engine, although it's impossible to say if Mazda will do away with its smallest offering's one-engine strategy. Considering the Mazda2 will be riding on a shortened version of the CX-5's platform, we'd expect some degree of mechanical parts sharing, regardless of how much the larger platform needs trimmed. Perhaps a detuned version of the 2.0-liter, Skyactiv four-cylinder could be under the 2's hood?