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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

Mazda's slick new CX-4 crossover is sadly only for China

Mazda just unveiled the CX-4 crossover at the Beijing Motor Show, introducing the sleek new crossover exclusively for the Chinese market. The CX-4 rides on the same wheelbase as the CX-5, and is just as wide. It even packs the same powertrain options: 2.0- or 2.5-liter inline fours from Mazda's Skyactiv-G series, mated to the same six-speed manual or automatic transmissions. It measures a little longer from bow to stern than the CX-5 (albeit shorter than the CX-7), but the key part here is that it's shorter in height – shorter even than the smaller CX-3 – thanks to its sleek coupe-like roofline. The resulting impediment to interior space may make little sense from a practical standpoint, but it sure does make it look good. Consider the CX-4, then, to bear a similar relationship to the CX-5 as the BMW X4 does to the X3, or the Coupe versions of the Mercedes GLC and GLE to their conventional counterparts – albeit with styling more similar to the Infiniti QX70, particularly at the back. The question is whether the US market is ready for a more budget-oriented five-door crossover coupe in the same way that it has embraced those more upscale offerings. Mazda doesn't seem to think so; at least not for the time being. For our part, looking at the CX-4, we're not so sure. What do you think? Related Video: Mazda Unleashes New Mazda CX-4 Crossover SUV - On display now at the Beijing Motor Show, sales in China start in June - HIROSHIMA, Japan—Mazda Motor Corporation has unveiled a new crossover SUV, the Mazda CX-4, at the Beijing Motor Show (Auto China 2016).*1 The latest edition to Mazda's new-generation lineup adopts SKYACTIV TECHNOLOGY and KODO—Soul of Motion design throughout and goes on sale in China in June. The CX-4 was made to exceed existing categories and stereotypes. The dynamic design is unmistakably KODO in form and the planted stance and sleek, coupe-like cabin combine to give the model an outstanding presence. Customers will appreciate the exceptional functionality and user-friendliness, including the ease of entering and exiting the vehicle and the flexible cargo space. With SUV-like ground clearance and Mazda's i-ACTIV AWD*2 all-wheel drive system, the CX-4 is ready to take on a wide range of road conditions and offers a combination of outstanding environmental and safety performance (Sustainable Zoom-Zoom) and a Jinba-ittai driving feel with excellent handling thanks to its low center of gravity.

Mazda and Clemson collaborate on Deep Orange 3 concept

There are school projects, and then there's the Mazda Deep Orange 3 Concept Car, a one-off built by Clemson University automotive engineering students and designed by Frederick Naaman from the Art Center College of Design in Pasadena. Clemson students unveiled the chassis at the 2012 SEMA show in Las Vegas, although this is the first showing of the car fully clothed.
Sporting a unique hybrid powertrain that can automatically switch between front-, rear-, and all-wheel drive. A gas-powered engine handles the fronts, while the rears are powered by an electric motor and a battery pack. The Deep Orange 3 also has an unusual three-plus-three layout, making it a much cooler version of your parent's old Vista Cruiser. The exterior sheetmetal clearly follows Mazda's established design language, and looks like it could easily pass for a five-door version of the Shinari Concept. It really is a great looking vehicle.
The Deep Orange 3 was part of Clemson's graduate-level auto engineering program, and is a regular partnership between the east coast school and the Pasadena-based design college's students. Clemson, Art Center and Mazda will be showing the Deep Orange 3 at the Center for Automotive Research Management Briefing Seminars in Traverse City, MI, from August 5 to August 8. Click through for a press release from Clemson University.