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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

Asian automakers still reluctant to use more aluminum

There's a logical progression of technology in the auto industry. We've seen it with things like carbon-ceramic brakes, which use to be the sole domain of six-figure sports cars, where they often cost as much as an entry level Toyota Corolla. Now, you can get them on a BMW M3 (they're still pricey, at $8,150). Who knows, maybe in the next four a five years, they'll be available on something like a muscle car or hot hatchback. Aluminum has had a similar progression, although it's further along, moving from the realm of Audi and Jaguar luxury sedans to Ford's most important product, the F-150. With the stuff set to arrive in such a big way on the market, we should logically expect an all-aluminum Toyota Camry or Honda Accord soon, right? Um, wrong. Reuters has a great report on what's keeping Asian manufacturers away from aluminum, and it demonstrates yet another stark philosophical difference between automakers in the east and those in the west. Of course, there's a pricing argument at play. But it's more than just the cost of aluminum sheet (shown above) versus steel. Manufacturing an aluminum car requires extensive retooling of existing factories, not to mention new relationships with suppliers and other logistical and financial nightmares. Factor that in with what Reuters calls Asian automaker's preference towards "evolutionary upgrades," and the case for an all-aluminum Accord is a difficult one. Instead, manufacturers in the east are focusing on developing even stronger steel as a means of trimming fat, although analysts question how long that practice can continue. Jeff Wang, the automotive sales director for aluminum supplier Novelis, predicts that we'll see a bump in aluminum usage from Japanese and Korean brands in the next two to three years, and that it will be driven by an influx of aluminum-based vehicles from western automakers into China. Only time will tell if he's proven right. News Source: ReutersImage Credit: Sean Gallup / Getty Images Plants/Manufacturing Honda Hyundai Mazda Nissan Toyota Technology aluminum

Mazda CX-9 Luggage Test | How much fits behind the third row?

We recently tested the luggage-carrying capability of one of the most spacious three-row crossovers, the Hyundai Palisade, and now it's time for one of the smallest. The Mazda CX-9 may look terrific and drive even better, but that zest comes at the expense of cargo capacity, as we're about to see. The big culprit is that rakish liftgate, which not only robs the CX-9 of luggage space, but third-row headroom as well. It's pretty dungeon-like back there despite competitive legroom, and there aren't any air vents or USB ports, either. But this is about cargo capacity, so let's see how much luggage will fit inside. According to the specs, the CX-9 has 38.2 cubic-feet with the third-row lowered. That's far less than the Palisade's 45.8 and Honda Pilot's 46.8. It's actually even less than the five-passenger Honda Passport (50.5).  The test car came with a $100 cargo mat, which is velcroed to the seats and folds OK with it, but the carpet also takes up some extra space ... and the CX-9 needs as much as it can get.  To raise the seats, lean inside and pull up/back on those two handles. There is 14.4 cubic-feet of space behind the raised third row. On paper, that is indeed one of the smaller amounts in the segment, but in practice, it seems even smaller.  You can free up space by removing the rigid floor panel. If you need to carry multiple pieces of luggage, it's almost a necessity.  OK, so I have two midsize roller suitcases, both of which would need to be checked. Then there's two larger carry-on roll-aboards and one smaller one. As a bonus, there's my wife's quasi-fancy weekend bag. It was a struggle to fit three of them aboard, and Tetrised together two formations. The first uses all three carry-on bags with the cargo floor removed. And no, the fancy bag won't fit atop the blue one because it'll run into the liftgate window. A smaller tote would definitely fit, however.  This is how I could fit one of the bigger check-in bags. The liftgate just barely closed. Again, you could fit a small tote atop the blue bag, plus some other items in the lower outboard regions.  OK, so how could you fit everything aboard? Lowering half of the 50/50-split third row is a must, obviously. Both big check-in bags then stack atop each other, and then stack the other four atop each other with the cargo floor in place.