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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

NHTSA releases updated Takata airbag recalled cars list, but it still has errors

Unfortunately, the government's list still contains errors.
The National Highway Traffic Safety Administration has issued an updated list of vehicle models that it's urging owners to repair under the mushrooming Takata airbag inflator recall. The latest version adds vehicles from new automakers like Subaru and Ford that are missing from the original announcement, and it also removes erroneous entries from General Motors, leaving only the 2005 Saab 9-2X (a reskinned Subaru WRX), and the 2003-2005 Pontiac Vibe, a joint project with Toyota.

2016 Mazda CX-9 First Drive

Automotive enthusiasts tend to obsess over spec sheets. How else could we know which cars and trucks are the quickest in a straight line, hold the road with the greatest tenacity, or tow the biggest trailers? More succinctly, what ammunition would we have in the seemingly endless back-and-forth of Internet forums if it weren't for specifications? Mazda's engineers think they've found a better way. The 2016 CX-9 has less horsepower than its primary competitors. The only engine available is a turbocharged four-cylinder, hooked to a six-speed automatic. Drivers won't miss the 23 horsepower (or more, as we'll soon explain) lost in the changeover from 2015 to 2016, because Mazda applied its holistic Skyactiv approach to the largest vehicle it offers. That means less weight and, ultimately, more fun. Or so they say. Are they right? Yes. And no. Most of the time, in normal on-road driving conditions, the 2016 CX-9 is the most fun you can have with three rows. But the real-world tradeoff didn't go off completely without a hitch. Reasoning that real-world performance is more important than ultimate horsepower, Mazda specified a four-cylinder for its big, three-row SUV instead of a more traditional V6. Let's get those all-important specifications out of the way: All 2016 Mazda CX-9s are fitted with a 2.5-liter turbocharged four-cylinder with 250 horsepower and, impressively, 310 pound-feet of torque at just 2,000 rpm. Unless you decide to use 87 octane, in which case you'll be limited to 227 horsepower. Mazda doesn't think owners will actually notice the difference in power levels, so there's no Premium Fuel Recommended sticker on the back of the fuel door. Mazda utilized some clever turbo trickery to deliver a diesel-like torque curve from its gasoline-fueled engine, which makes the small-displacement powerplant feel lively at low engine speeds. The flipside is that the CX-9 runs out of breath as the needle swings across the upper reaches of the tach. While that simply wouldn't do for a sportscar like the MX-5, in the CX-9 it's not necessarily a deal breaker. One benefit to the downsized engine is that it doesn't guzzle fuel. The EPA rates the CX-9 at 22 miles per gallon in the city and 28 on the highway. Drop one mpg all around for the all-wheel-drive model. Those figures beat out all the CX-9's most natural competitors, including the Honda Pilot and Toyota Highlander. The turbo-four Ford Explorer matches the 28-mpg highway figure, but loses by three in the city.