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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

2014 Mazda6: July/August 2013

Our newest long-termer - the Soul Red 2014 Mazda6 seen here - arrived in my driveway at the end of June. Without hesitation, I immediately put it to work as a daily driver, carpool bus and family vacation sled, and it accomplished all of those tasks with aplomb. Now, more than 4,000 miles down the road, I am left convinced that Mazda's latest midsize sedan is one of the best in its segment.
During the past 60 days, I have subjected the Mazda6 to scorching travel across Southwestern deserts, wheezing climbs over 8,000-foot-high Sierra Nevada mountain passes and basking in the cool ocean breezes of Malibu. It traveled with four passengers and a full load of luggage from Los Angeles to Lake Tahoe, and it braved the bumper-to-bumper freeway congestion on a weekday trip down to San Diego. It accomplished everything that was asked of while hardly skipping a beat - it has only required a regular sip of unleaded fuel to keep it moving forward.

Mazdaspeed3 concept tipped for Frankfurt debut

The last quarter of 2015 could be a big one for Mazda as a report has emerged from Australia claiming that the company will come to the Frankfurt Motor Show in September with a near-production concept of the third-generation Mazdaspeed3, while a second-generation CX-9 will be shown a few months later in Los Angeles. Motoring.com.au ran the initial report, and although the news seems plausible, the outlet doesn't provide sources for either piece of news. Likewise, our friends at Mazda USA refused to comment on "speculation." Speculation it may be, but it's surely tantalizing considering the recent popularity of both the hot hatch and three-row crossover segments. According to the Aussies, the concept Speed3 will quickly evolve into a production model, which will launch alongside a mid-cycle refresh for the current 3. A turbocharged 2.5-liter will spit out 295 horsepower, and could have all-wheel drive. Even if only the front axle is doing the work, the MS3 will easily be able to stand toe-to-toe with hotter half of the segment based on output alone. As for the more mundane offerings, Motoring reports the long-in-the-tooth CX-9 will get a replacement in LA, although it doesn't offer much in the way of details beyond that. It should be interesting to see how the company's Skyactiv philosophy will be implemented on such a large vehicle. Perhaps the biggest surprise from the Australian report, though, are the outlet's reports on the CX-7, which will return sporting a third row of seats after its larger sibling debuts. That'd give Mazda a versatile lineup of four crossovers, with the sub-compact CX-3, the compact CX-5, the midsize, seven-passenger CX-7 and the fullsize CX-9. As we weren't able to confirm any of this with Mazda, we'd still warn that this news should be ingested with grains of salt. Still, it looks like the company could be set to make some waves in the first two shows of the upcoming auto show season.