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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 CX-3 details come to light

Mazda may be working on a new CUV, according to Auto Express. Reportedly called the CX-3, the small crossover will be engineered to take on the likes of the Ford EcoSport and Nissan Juke, but with a focus on fuel efficiency and engaging driving characteristics.
The report names no sources, but says the CX-3 will benefit from a new small-displacement diesel engine. The 1.6-liter oil burner will be joined by a 1.3-liter gasoline engine when the vehicle debuts in 2014. Auto Express reports the model may bow as a front-wheel drive offering only, with no all-wheel-drive option.
And what will it look like? Word has it Mazda will continue to leverage the face we've seen on the current CX-5 (pictured). That means the company's shield grille will make the jump, but with more plastic lower body cladding. Inside, Auto Express says the CX-3 will offer buyers fold-flat rear seating for extra cargo capacity.

Watch this 1,500-hp Mazda MX-5 smoke a race track

In December 2014 we watched New Zealand drifter "Mad Mike" Whiddett assemble his RADBUL, an NC-series Mazda MX-5 Miata with a four-rotor engine aided by twin Garrett turbochargers. The Dr. Frankensteins at engine builders Pulse Performance expected their creation to be good for 1,500 horsepower. This year we get to watch Whiddett run the monster around Highlands Motorsports Park in New Zealand, brewing up enough tire smoke to set of fire alarms in the International Space Station. When the car was finished in February Pulse Performance put it on the dyno, toning down the boost because "the tires easily smoked the rollers." The result on the day was 1,032 horsepower from the 2.6-liter engine. When Whiddett campaigned it at the Forth Worth, TX round of this year's Formula Drift Pro Championship, he said tiny adjustments have a huge effect on the way the car behaves so they were still trying to find the right balance a few months into the season because of the testing limit outside of competition. Unsurprisingly, he also said the car "is so damn fast that I'm actually having trouble slowing down." RADBUL is the third in Whiddett's line of Mazda drift specials, after the RX-8 BADBUL and the RX-7 MADBUL. Check out the video above for the ballet, and for more, check out the behind-the-scenes and the 360-degree POV videos.