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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 RX-Vision Concept revives the rotary

Mazda continues fighting to keep the rotary alive, and with the RX-Vision concept at the 2015 Tokyo Motor Show, the company unveils its dream for the engine's revival in a curvaceous sports coupe. Before any fans burst with excitement at the prospect, Mazda only "hopes" to have this gorgeous shape available in showrooms someday, for now. The RX-Vision starts with the classic elements of a front-engine, rear-wheel drive sports coupe by combining a long, low hood, short rear deck, and a passenger compartment way at the back. From there, Mazda's stylists add the swooping touches of the brand's Kodo design language. The result looks thoroughly modern and still subtly evokes generations of the RX-7 in the sculpted fenders and flowing roofline. Under that shapely hood hides Mazda's next-generation rotary, which the company has dubbed the Skyactiv-R. Unfortunately, details about it are quite scarce at the moment, including the displacement or even the number of rotors the engine uses. Still, Mazda is abundantly clear that development of the mill is very much moving forward. Mazda's designers opt for a retro flair inside with the deeply dished steering wheel and gauges in three pods. The rest is simple and elegant with a minimalist, metal gearshift rising from the center console and leather straps for door pulls. Finishing things off is a clean mix of red and black upholstery with a little carbon fiber for contrast. Expect live shots from Tokyo soon to show how the RX-Vision looks under the lights. Related Video: Mazda Reveals Mazda RX-VISION Concept -- Powered by next-generation rotary engine SKYACTIV-R, represents Mazda's vision of the future -- HIROSHIMA, Japan—Mazda Motor Corporation unveiled the rotary-powered Mazda RX-VISION sports car concept at the Tokyo Motor Show*1 today. The rotary engine is a symbol of the company's "never-stop-challenging" spirit. RX-VISION represents a vision of the future that Mazda hopes to one day make into reality; a front-engine, rear-wheel drive sports car with exquisite, KODO design-based proportions only Mazda could envision, and powered by the next-generation SKYACTIV-R rotary engine. Rotary engines feature a unique construction, generating power through the rotational motion of a triangular rotor. Overcoming numerous technical difficulties, Mazda succeeded in commercializing the rotary engine, fitting it in the Cosmo Sport (known as Mazda 110S overseas) in 1967.

Import pickup truck-killing Chicken Tax to be repealed?

After over 50 years, the so-called Chicken Tax may finally be going the way of the dodo. Two pending trade deals with countries in the Pacific Rim and Europe potentially could open the US auto market up to imported trucks, if the measures pass. Although, it still might be a while before you can own that Volkswagen Amarok or Toyota Hilux, if ever. The 25-percent import tariff that the Chicken Tax imposes on foreign trucks essentially makes the things all but impossible to sell one profitably in the US, which lends a distinct advantage to domestic pickups. Both the Trans-Pacific Partnership with 12 counties and Transatlantic Trade and Investment Partnership with the European Union would finally end the charge. According to Automotive News though, don't expect new pickups to flood the market, at least not immediately. These deals might roll back the tariff gradually over time, and in the case of Japan, it could be as long as 25 years before fully free trade. Furthermore, Thailand, a major truck builder in Asia, isn't currently part of the deal, and any new models here would still need to meet safety and emissions rules, as well. Automotive News gauged the very early intentions of several automakers with foreign-built trucks, and they weren't necessarily champing at the bit to start imports. Toyota thinks the Hilux sits between the Tundra and Tacoma, and Mazda doesn't think the BT-50 fits its image here. Also, VW doesn't necessarily want to bring the Amarok over from Hannover. There is previous precedent for companies at least considering bringing in pickup trucks after the Chicken Tax's demise, though. The Pacific free trade deal could be done as soon as this fall, while the EU one is likely further out, according to Automotive News. Given enough time, the more accessible ports could allow some new trucks to enter the market.