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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

2016 Scion iA shows its face, for better or worse, in New York [w/video]

We have a theory that, among auto designers, there's something resembling Stockholm Syndrome. Designers spend so many hours looking at a single product that, after awhile, they can't help but fall in love with it, regardless of how bad it may look to everyone else. That might explain the appearance of the Scion iA, which while largely similar to the handsome Mazda2, replaces that car's attractive five-pointed grille with what could be described as a gaping maw. Fortunately, it's only the Scion grille that really causes any offense. The parts of the iA that have been left to Mazda designers are, as we said, rather handsome. That includes both the attractive rear and the Kodo-derived lines found in the tiny sedan's profile. The cabin, meanwhile, is well outfitted with standard equipment, including a seven-inch touchscreen display. Plastic is the dominant material, although the overall layout is logical and mostly attractive. Have a look at our live gallery of images of Scion's first-ever four-door sedan. Sports Sedan that Shouts Success All-New 2016 Scion iA Rolls Into New York With a Trunk - Brand's first-ever sedan with dramatically sporty look and agile moves - Estimated MSRP in the $16,000-range for well-equipped mono-spec model • High-spirited 1.5-liter engine; estimated 42 MPG highway - Choice of 6-speed stick shift or 6-speed automatic - Standard Low-speed Pre-collision safety system - Roomy cabin with premium amenities - 7-inch multimedia system with voice recognition NEW YORK, March 31, 2015 – Scion is expanding its line-up in more ways than one. In addition to adding a new vehicle to its stable, it's also adding its first-ever sedan, the remarkably sporty, yet very affordable, 2016 Scion iA. The Scion iA sedan joins the all-new 2016 Scion iM hatchback for a one-two punch in the subcompact and compact segments. The new sans-hatch Scion will arrive in dealerships this fall for an estimated MSRP in the $16,000-range. That's for a mono-spec model equipped with standard Low-speed Pre-collision safety system and 7-inch multi-media system with voice activation. Because Scion has a no hassle, no haggle Pure Price, customers walk out the door with the same price they saw posted in the dealership. "Dramatic" could be an understatement when describing the visual impact of the 2016 Scion iA. Beneath the daringly curved sheetmetal lies a tight, agile machine that re-defines "entry level." Call the design "class above," a term that applies throughout the car.

2014 Mazda Skyactiv Prototype looks ready for Daytona

With less than two weeks before the Mazda Skyactiv Prototype makes its race debut at the 2014 Rolex 24 at Daytona, the Japanese Zoom-Zoom brand brought its diesel-powered racer to the floor of the 2014 Detroit Auto Show.
The red prototype marks Mazda's return to prototype racing, and will campaign the inaugural Tudor United SportsCar Championship using a 2.2-liter, SkyActiv-D diesel engine. With 451 horsepower on tap and 580 pound-feet of torque, the racer should stand up well against a field of gas-powered competitors.
Should the Skyactiv win Daytona, it'll be a coup for Mazda. The racer is running an engine with over 50 percent of its parts drawn from the oft-delayed production Skyactiv-D. Head up top for our full gallery of images of the new Skyactiv Prototype. The 2014 Rolex 24 will be run from January 25 to 26.