2012 Toyota Corolla Le on 2040-cars

Auto blog

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 rotary engine returning, in an autonomous Toyota delivery vehicle

With the return of the Toyota Supra, the Lotus Esprit and Mazda RX-7 probably share the trophy for hardcore sports cars we'd most like sequels for. The Esprit's too hopeless to consider. Mazda continues to speak in riddles about a new RX-7, but the company has confirmed that the RX-7's heart will return: The company's building a rotary-engined range-extender engine for an autonomous Toyota. At this year's Consumer Electronics Show, Toyota announced its e-Palette autonomous electric delivery vehicle. The e-Palette will come in bus, shuttle, and car versions to service the delivery needs of companies like Amazon, Pizza Hut, and Uber. They'll also be built in custom configurations such as mobile hotel rooms and emergency command centers. Toyota owns 5.25 percent of Mazda, the two automakers recently signed a deal to open a factory in Alabama, and Mazda's known for ace work with small engines. It's not surprising that Toyota chose Mazda for help with the e-Palette, but the rotary aspect is novel. Mazda U.S. president Masahiro Moro said, "This is a very suitable engine to run a generator because it's compact and lightweight, with no noise or vibration, and it has very good fuel economy." There have been rumors of this development previously, as far back as 2016, then again last October in reference to an electric architecture Mazda intended for release in 2019, but Toyota was never mentioned. As to pining for that RX-7 redux, Mazda's head of powertrain said the company's overcome the technical issues of a sports-car-sized rotary engine — the challenge is making a business case for such a sports car. We think the RX-VISION made the case three years ago, and it's already fitted with the Skyactiv-R rotary. Separately, a Toyota spokesman added that the two companies are looking into whether the rotary can be useful beyond the electric car. That's not much to go on when it comes to pining for another RX-7, but hope lives on a scanty diet. Related Video:

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.