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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.

2017 Mazda CX-9 packs turbo power, fresh style

After nearly a decade of sales, Mazda finally introduces the second-generation CX-9 crossover. It delivers a comprehensive interior and exterior overhaul, blessing the CX-9 with a powerful, efficient Skyactiv powertrain, and instilling even more of the sporting character that makes Mazdas so darn charming. Like every other vehicle in Mazda's catalog, the CX-9 now wears the handsome, suave stylings of the company's Kodo design language. We think it looks great, but feel free to disagree in Comments. The second-generation CX-9 is the perfect example of Mazda's growing interior design prowess. As is so often the case, it's not so much the style but the choice of materials that stands out. Nappa leather can be paired with real Japanese rosewood and aluminum accents to craft a cabin that feels far more expensive than what you might expect from Mazda. The quality is impressive, even on the pre-pre-production prototypes we tested (drive impressions coming soon). The other headline, aside from the gorgeous interior, is the powertrain. The heart and soul of the operation is a new 2.5-liter, turbocharged Skyactiv engine. Although it only produces a modest 250 horsepower, that figure is complemented by a whopping 310 pound-feet of torque. Importantly, torque is easy to access in the lower part of the rev range, with peak twist coming in at just 2,000 rpm. It drops off rather suddenly north of 4,000 rpm, but as Mazda tells it, most consumers rarely venture above that figure. Mazda expects the CX-9's core market to be perfectly happy with the robust low-end output. A six-speed automatic is responsible for doling out that grunt, and is meant to play nicely with the same i-Activ predictive all-wheel-drive system found in the CX-5 (although the two cars don't share any AWD components). Using 22 different sensors, the system measures road conditions 200 times every second and will even send up to half the engine's power to the rear axle. The entire car, meanwhile, rides on the same Skyactiv architecture as the CX-5 and Mazda6, meaning a multi-link rear suspension has been paired with MacPherson struts up front. Eighteen-inch wheels will be standard, although 20s will also be on offer. You can expect to hear much more on just what the new CX-9 is like to drive next week. Until then, enjoy the official images from Mazda, and keep an eye open for live shots from the LA debut, headed your way soon.