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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 diesel under consideration for US, hybrid not so much

It's been a long time coming, but we finally clapped our eyes on the real deal, officially official 2014 Mazda3 in hatchback form yesterday. Yet there's a lot more to learn about this next-generation version of what has always been one of our favorite compacts. We know that the US version will come with one of two Skyactiv engines, but what about alternatives? Will there be any... or will the gasoline-fed four-cylinders be powerful and frugal enough to carry the day?
According to Automotive News, the answer is a definite maybe. Mazda North America CEO Jim O'Sullivan has told the trade publication that his employer will consider adding the company's well-liked 2.2-liter Skyactiv diesel powerplant to the model down the road. However, the company first wants to see how the engine fares with American consumers in its big-brother Mazda6 sedan, a model that goes on sale later this year. As for a potential Mazdaspeed3 successor, mum is still the word.
Anything else? Uncharacteristically, Mazda will build a hybrid model of its new 3. We say "uncharacteristically," because the Japanese independent has long shied away from gas-electric powertrain tech. In fact, it's gone so far as to boldly announce its aversion to the technology, with auto show banners proclaiming "Not Electric. Not Hybrid. Not A Drag To Drive." Despite all that, this new generation of Mazda3 will in fact be the company's first full hybrid production model. According to AN, however, O'Sullivan says that the company has "no plans" to sell it in the US.

Mazda says 83 percent of new cars bear Skyactiv moniker

Mazda's US sales are down a little bit but the company's fuel economy is almost assuredly up. That's because its fuel-saving Skyactiv drivetrain technology is essentially taking over US vehicles sales. To the tune of about five out of every six vehicles sold, at least. While the Japanese automaker's US sales in February fell 2.4 percent from a year earlier, Skyactiv accounted for 83 percent of its sales last month. Most notably, Mazda6 sales jumped 46 percent from a year earlier, while Mazda CX-5 sales were up 72 percent. The company also celebrated the opening of its factory in Salamanca, Mexico, where it will make models such as the Mazda2 and Mazda3. The company is not resting on its fuel-economy laurels either, apparently. In January, it was reported the company is hard at work on its next-generation Skyactiv technology, which will boost fuel efficiency by as much as 30 percent by using diesel-like high compression. As it is, Mazda had the highest fleetwide fuel economy of any major automaker in the US for the 2013 model year with a 27.5 mile per gallon average, according to the Environmental Protection Agency (EPA). Honda came in second with 27 mpg. Check out Mazda's press release below. MAZDA SKYACTIV® TECHNOLOGY SETS RECORDS IN FEBRUARY - Mazda Celebrates Grand Opening of All-New Production Facility in Salamanca, Mexico - IRVINE, Calif., March 3, 2014 /PRNewswire/ -- Mazda North American Operations (MNAO) today reported February U.S. sales of 24,431 vehicles, representing a decrease of 2.4 percent versus last year. Year-to-date sales through February are down 6.7 percent versus last year, with 43,155 vehicles sold. Key February sales notes: Mazda's SKYACTIV® TECHNOLOGY accounted for 83.2 percent of all vehicle sales during the month of February. This is the largest percentage of Mazdas equipped with SKYACTIV TECHNOLOGY sold in one month, and second-best month of total volume ever with 20,245 vehicles sold. Mazda6 experienced its second-best February since 2008 with 3,945 vehicles sold, representing an increase of 46.0 percent, year-over-year (YOY). February 2014 was CX-5's best month ever with 9,353 vehicles sold, good for an increase of 71.6 percent, YOY. February was one of the most historic months for Mazda as it celebrated the grand opening of its all-new engine and vehicle assembly plant in Salamanca, Mexico.