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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

Mazda2 sedan images released ahead of Thailand reveal

Mazda will let customers put some junk in the trunk of its Mazda2 with the introduction of a new four-door model at the upcoming Thailand International Motor Expo on November 28. While the show is still days away from beginning, the Japanese automaker is already spilling some of the details about the sedan variant of its fetching subcompact. The four-door and traditional hatchback versions of the Mazda2 will both hit Thailand in early 2015. The two of them are essentially identical other than the added trunk and adjusted rear styling for the sedan. It basically makes the model look like a shrunken down version of the Mazda3 sedan, which isn't a bad thing at all. The company has big expectations for the little car because they're already Mazda's bestselling passenger models in Thailand. Both models will be sold with the SkyActiv-D 1.5 diesel in Thailand, which gives them lower taxes under the government's low-emission, compact car incentive plan. According to a previous rumor, a gasoline-fueled mill could join the lineup eventually, too. There's also gossip that the Mazda2 sedan could eventually be sold in Australia and Europe, but US sales are still a mystery. When asked about the four-door here, Mazda spokesperson Eric Booth told Autoblog, "We'll have more to say on Mazda2 at a later date. Right now, our focus is on the launches of the all-new CX-3 and MX-5 as well as the refreshed CX-5 and Mazda6." The company is showing all of those models at this week's Los Angeles Auto Show. Mazda to Debut the All-new Mazda2 Sedan at Thailand International Motor Expo - Goes on sale in Thailand alongside the hatchback model early 2015 - HIROSHIMA, Japan-Mazda Motor Corporation will debut the sedan model of the all-new Mazda2 (known as Mazda Demio in Japan) at the Thailand International Motor Expo 2014*1 on November 28, 2014. The all-new Mazda2 compact sedan features handsome proportions and bold styling, a high-quality, sporty interior and a combination of excellent driving performance and outstanding environmental and safety performance. The all-new Mazda2 hatchback will also be exhibited at the expo; the first time the model has been displayed to the public in Thailand. Both the sedan and the hatchback feature the SKYACTIV-D 1.5, Mazda's newly-developed small-displacement clean diesel engine. The all-new Mazda2 goes on sale in Thailand in early 2015.

Mazda2 production fires up in Mexico

Mazda has officially kicked off production of the next-generation Mazda2 at the company's new factory in Salamanca, Mexico. Alongside the auto assembly plant, operations have also commenced at the facility's engine machining factory.
"With the start of production of the all-new Mazda2, operations underway at the engine machining plant, and an increase in our annual production capacity, we now have an even stronger production framework capable of supplying global markets with Skyactiv products of the same high quality level as those made in Japan," Mazda de Mexico Vehicle Operation's President Keishi Egawa said in a statement. "At the same time, we are pleased to be able to make a contribution to Mexico's further economic growth."
MMVO joins Mazda's Hofu Plant in Japan and the Auto Alliance factory in Thailand, which commenced Mazda2 production in July and September, respectively.