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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

Cummins and Isuzu to collaborate on prototype electric truck

Cummins, the company known best for its diesel engines, just announced a partnership with Isuzu to “create a prototype medium-duty, battery electric truck” for North America. Exploration of electric powertrains isnÂ’t totally new for Cummins, as itÂ’s talked about a transition to electric since 2017. In fact, Cummins even revealed a battery-powered truck back then, too. This electric truck with Isuzu is new, though, and itÂ’s going to put the Cummins PowerDrive6000 powertrain into IsuzuÂ’s F-Series truck that you can see in the photo above. Cummins does not detail specs for its PowerDrive6000, but weÂ’ve seen the drive unit used in a hybrid concept from Cummins previously. It provided 50 miles of electric range when the battery pack in that truck was full, but with this being a full battery electric vehicle, we suspect that Cummins and Isuzu are using a much larger battery pack for more range. We donÂ’t have any vital specs like range or power, but we suspect those will come at a later date. This year will see Isuzu and Cummins put the truck through a pilot and demonstration phase in North American fleets. After thatÂ’s been completed — assuming it is successful — the partnership could see Isuzu and Cummins collaborate on building battery electric trucks for commercial use here in North America. “We are excited to be working with Isuzu to accelerate decarbonization within the partnership,” said Amy Davis, Vice President and President of New Power at Cummins. “ItÂ’s through our joint commitment in innovation that we provide our customers with safe, reliable zero-emissions solutions.” Related video:

Mazda and Isuzu to collaborate on a new pickup truck

After decades, Mazda has finally untangled itself from its relationship with Ford. The last vestige of that partnership is the BT-50, a rebadged version of the global Ford Ranger pickup truck. Once the BT-50 ends production, Mazda has announced that it will collaborate with Isuzu to develop its next generation of pickup trucks. The BT-50 was co-developed with Ford's Australian division. In their current iteration, the BT-50 and its Ranger twin were never on sale in the United States. Mazda's last pickup in the US was the B-Series, itself also a rebadged version of the old Ford Ranger. Isuzu pulled out of the US passenger vehicle market in 2009, although it still sells commercial vehicles here. Isuzu, continuing a long and complicated relationship with General Motors, co-developed the diesel engine that currently powers the Chevrolet Colorado and GMC Canyon. In select markets, Isuzu sells a rebadged version of the Colorado as the D-Max. Details on the Mazda/Isuzu tie-up are scarce. A single press release simply says "Isuzu will produce next-generation pickup trucks for Mazda, based on Isuzu's pick-up truck model." This isn't the first truck collaboration between the two companies. Since 2004, Mazda has sold the Titan, a rebadged version of the Isuzu Elf commercial truck. The Elf is sold in the US as the Isuzu N-Series. Those in the US hoping for a new competitor in the midsize-truck segment shouldn't get their hopes up for the new truck. There are currently no plans to bring them here. There is hope, though, that Ford will bring the Ranger replacement stateside sometime in the next few years. Related Video: News Source: MazdaImage Credit: WILLIAM WEST/AFP/Getty Images Isuzu Mazda Truck