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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

Recharge Wrap-up: 61 miles on Autopilot; Mazda CX-9's 32% mpg improvement

A technology analyst at The Motley Fool used Tesla's Autopilot uninterrupted for 61 miles. In order to see how far the Tesla Model S could drive itself without driver intervention, Daniel Sparks set off on the highway from Monument, Colorado, through Colorado Springs and onward toward Pueblo. Only when a truck encroached on his lane did the driver take command of the wheel, rather than waiting to see what the car would do. "With [the] Model S nearly out of Pueblo and onto a long, boring stretch of highway by the time I had to grab the wheel, chances are I could have made it all the way to Colorado City if it wasn't for this interruption," says Sparks. Read the full account at The Motley Fool. The 2016 Mazda CX-9 offers 32 percent better fuel economy than the outgoing model. The front-wheel-drive CX-9, equipped with Mazda's Skyactiv-G 2.5T engine, gets an EPA-estimated 22 mpg city/28 mpg highway/25 mpg combined. The 2016 CX-9 has shed significant weight compared to its predecessor. Its turbocharged engine uses a Dynamic Pressure Turbo system, which improves performance at lower rpm by controlling the degree of exhaust pulsation according to engine speed. The new CX-9 goes on sale this spring. Read more at Green Car Congress. A group of eight US cities have formed the Energy Secure Cities Coalition (ESCC), pledging to switch their fleets over to alternative fuels. Atlanta, Charlotte, Indianapolis, Orlando, Rochester, Sacramento, San Diego and West Palm Beach will retire their petroleum-powered vehicles in favor of EVs and cars using cleaner fuels like natural gas. The cities expect the change to help improve air quality and save taxpayer money on fuel and maintenance costs. The ESCC hopes to grow to include 25 major cities, removing some 50,000 petroleum-fueled vehicles from service and saving 500,000 barrels of oil per year. Read more in the press release below. Eight Major Cities Unite to form Energy Secure Cities Coalition—Fleets Embracing Alternative Fuels to Improve America's National and Economic Security Coalition's goal is to retire 50,000 petroleum-powered vehicles, saving tens of millions in taxpayer dollars and improving U.S. national and economic security. Washington, D.C.

Why Mazda did so well and Volvo so poorly in Consumer Reports survey

The poor performances of Tesla and all three domestic automakers got the headlines in Consumer Reports magazine's latest reliability survey, but there were other results that caught our interest. Tiny Mazda notched the biggest gain among the 29 brands included in this year's list, leap-frogging nine spots to No. 3. Buick, which was in the top 10 last year, fell 11 spots to No. 19, the biggest decline of any brand. And then there's Volvo, a brand often vaunted for its quality and reliability, dropping six spots to dead last. What gives? For starters, all three brands benefited or suffered in large part due to their relatively small portfolio of vehicles. So when raves or complaints rolled in for even one particular model, as was often the case, it weighed heavily on the entire brand. That's especially true when it involves a relatively high-volume, hot-selling model such as the Buick Enclave (more on that in a moment). Mazda fared as well as it did despite the CX-3 losing Consumer Reports' influential "recommended" status due to problems with its climate system, including leaks from the condenser and refrigerant unit that triggered a service bulletin from the automaker in late 2016. Deputy auto editor Jon Linkov said that scratch didn't hurt the overall brand, since the CX-9 crossover and MX-5 Miata both jumped up to replace it on CR's list of newly recommended vehicles, thanks to several back fixes Mazda made to both models. For Buick, the redesigned Enclave SUV earned a "Much Worse Than Average" rating after owners reported problems with the new nine-speed automatic transmission it shares with the Chevrolet Traverse as well as some issues with the climate system. There were issues with rough shifting, plus complaints about the torque converter that necessitated fixes to the computer or outright replacement. "Again, similar stuff that we saw with the Traverse: both first-year vehicles, similar powertrains," LInkov said. He said all-new vehicles or redesigns typically fare poorly in CR's reliability survey due to issues that are hard to suss out before vehicles go into everyday use by consumers. The top-selling Encore and Envision fared well, Linkov said, but were outdone by the Enclave's problematic transmission components. The Enclave was Buick's second best-selling model through September at 35,227 units. Then there is Volvo, about which there is one word to sum up its woes: infotainment.