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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

How long will the 'golden age' of performance last?

High-powered sports and luxury cars were everywhere at the New York Auto Show, prompting the obvious question for enthusiasts: How long will this golden age of performance last? Industry leaders have some time before regulations elevate the Corporate Average Fuel Economy level in 2025. Even then, they expect cars rippling with power to survive in some form. "Is it the end of an era," I don't think so," said Ola Kallenius, Daimler AG board member for Mercedes-Benz cars marketing and sales. "That performance element of individual mobility I don't think will ever go away." Kallenius, who oversaw the company's AMG division from 2010-2013, expects it to continue to grow. Last year, AMG sold a record 68,875 units around the world, an increase of 44.6 percent over 2014, with strong growth in the US, China, and Germany. Still, there's always the potential for gas to spike, and pending fuel economy regulations are looming. That could lead AMG to add electrification to its products, Kallenius said, pointing to the electric SLS as a test case. Chevy is also thinking ahead, said Al Oppenheiser, chief engineer of the Camaro. He wouldn't bite when asked about electrification for the Camaro (he did say "never say never"), but admitted in 2025 "it's going to be pretty tough to sell V8s." For now, things are rosy for muscle cars, and Chevy confidently showcased the 640-hp Camaro ZL1 in coupe and convertible form in New York. "I think that this is truly the golden age of performance," Oppenheiser said. It's hard to disagree. News & Analysis News: The 2017 Mazda MX-5 Miata RF was a show-stopper in New York. Analysis: There was a palpable energy when this RF — for Retractable Fastback — was revealed the night before the show at a trendy off-site venue near the Hudson River. Even as a parade of SUVs and flashy luxury cars rolled out the rest of the week, the Miata remained a hot topic. The Retractable Fastback is really a clever targa top, with part of the roof stowing behind the seats, adding about 100 pounds compared to the standard convertible. It makes the car more practical and arguably more attractive. The RF continues Mazda's tradition of selling the Miata with a hardtop variant. The first and second generations offered a detachable one, and a power retractable hardtop (a $1,700 option) was available on third-gen models. Judging by its reception in New York, the RF could prove to be even more popular than its predecessors.

Goodbye Zoom-Zoom, Driving Matters is Mazda's new slogan [w/video]

Timed with the launch of the 2016 MX-5 Miata, Mazda is now changing gears with its advertising strategy in the US by launching a whole new slogan. The Japanese brand's latest marketing motto takes a much more direct approach than Zoom-Zoom by simply saying Driving Matters. The two-word phrase is meant to make customers believe that a good time behind the wheel can improve their lives. Driving Matters is also supposed to say something about how Mazda engineers vehicles. "Whether it's for safety purposes or for maintaining our 'fun to drive' nature, it all comes down to the fact that driving matters to our customers and it matters to us." Russell Wager, vice president of marketing at Mazda North American Operations, said in the announcement of the new campaign. However, Zoom-Zoom isn't entirely dead, and the words still appear in small print in some of these spots. According to Wager in an interview with Automotive News, the old slogan isn't necessarily understandable to some focus groups. "I'll ask them to explain to me what 'Zoom Zoom' means, and I'll get 6 or 7 different answers. That's what Driving Matters is supposed to address. It's supposed to solidify what 'Zoom Zoom' means to people," he said. So far, the company has released several examples of the campaign to highlight the Miata and Mazda6. At the same time, Mazda is launching a new commercial (embedded below) called A Driver's Life that showcases many of its models but puts a big emphasis on the MX-5. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Mazda Launches All-New Advertising Campaign, "Driving Matters" - New Campaign Communicates How the Joy of Driving Can Enhance Your Life - IRVINE, Calif. (May 21, 2015) –The Oxford Dictionary defines "driving" as, "operating and controlling the direction and speed of a motor vehicle." Mazda believes that driving is more than a definition. Driving is an experience that can enhance your life. To better illustrate how every Mazda vehicle embodies why "Driving Matters," today Mazda North American Operations (MNAO) is rolling out a new advertising campaign. Driving Matters is an evolution of the Game Changers campaign. With Game Changers, Mazda succeeded in increasing consumer awareness of the functional attributes of our vehicles. Driving Matters will extend the message by creating an emotional connection to the brand.