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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

Sweating the small stuff | 2017 Mazda CX-5 First Drive

The 2017 Mazda CX-5's door handles got their own design study. They got their own graphs, maths, and a team of people scientifically analyzing how humans interact with them. There was a whole to-do. And yet, you look at them back-to-back with their predecessors, a Spockian eyebrow reaching to the stars, and wonder what all the fuss was about. But apparently they're better. They're also perfectly illustrative of the entire effort to re-engineer and improve Mazda's best-selling model. At first, the 2017 Mazda CX-5 seems like a sensible evolution of its well-loved predecessor – there's sexier styling, a more premium cabin, and additional features, but the dimensions and engine specs look awfully similar. It certainly looks like one of those "the old car's great, let's not overthink the new one" redesigns. Except it isn't. Dig deeper and you'll see just how much meticulous work – from the door handles to the throttle response – went into making the new CX-5 a crossover that thoroughly trounces the majority of its competition. Take the efforts to make it quieter. According to Mazda's internal measurements, the sound-quelling improvements made for the CX-5's 2016 refresh already made it one of the quietest compact SUVs on the market. That apparently wasn't good enough. To what seems like an absurd degree, Mazda's engineers obsessively examined every nook, cranny, corner, and crevice to sniff out noise and eliminate it. Gaps were filled, insulation was injected, seals were added, air was redirected, glass was double glazed, and carpet replaced plastic coverings. It would seem that the Society of Persnickety Engineers is well represented at Mazda HQ. "I'm not sure how they found some of these," said Mazda vehicle development engineer Dave Coleman with a shake of his head, almost amused by the obsession and dedication of his colleagues across the proverbial hall in the sound-deadening department. (He goes over many of their enhancements in the video below.) And it worked. The new CX-5 is indeed incredibly quiet, even on San Diego's notoriously loud corrugated concrete freeways. It is quiet for a Mazda – a brand previously known for the exact opposite – and the entire segment. Even the fairly quiet 2017 Honda CR-V we drove on the same freeways on the way to San Diego couldn't match it. Actually, much of the driving experience can't be matched by a competitor.

Mazda to relocate its US offices into Irvine's tallest building

Mazda is the latest foreign automaker to be moving its North American headquarters. Only this time, it's not moving further south. Instead, the Japanese automaker is simply relocating to another facility in Irvine, CA. In a little over a year from now, Mazda North American Operations will move to 200 Spectrum Center Drive (pictured in the rendering at right), taking up five of the 21 floors in Orange County's tallest building for a total of over 100,000 square feet of office space. It'll also take up half the lobby with vehicles on display and the exclusive naming rights on the top of the building. The facility, designed by Pei Cobb Freed & Partners, boasts full glass walls from floor to ten-foot ceiling for uninterrupted 360-degree views. Mazda has been in its current US headquarters at 7755 Irvine Center Drive (pictured above) since 1987. The five-story building was specifically constructed for the purpose and was the tallest in Irvine at the time. Prior to that it was based in Compton from 1970. The move to the new facility is scheduled to take place in February, 2017. Mazda's announcement marks only the most recent of foreign automakers to relocate their North American headquarters. Toyota is moving to Texas, Subaru to Camden, Lotus to Ann Arbor, Daimler to Farmington Hills, and Mercedes-Benz to Atlanta (where Porsche recently relocated, as well). Cadillac also recently moved from GM's Renaissance Center in downtown Detroit to its new headquarters in New York. Hyundai and Kia also quarter their North American operations in Irvine, as does Aston Martin. Meanwhile Honda and Toyota (for the time being) are based less than an hour away in Torrance, and Mitsubishi halfway in between in Cypress. Though they no longer sell passenger cars in North America, Isuzu and Suzuki still operate their US bases in SoCal as well, in Anaheim and Brea, respectively – all municipalities located just south of Los Angeles. Nissan and Subaru also base their US operations outside of California, with head offices in Tennessee and New Jersey, respectively. Related Video: Mazda Set To Relocate North American Headquarters in 2017 - With 50 years of roots in Southern Calif., Irvine will remain 'home' for Mazda - IRVINE, Calif., Jan. 11, 2016 /PRNewswire/ -- Mazda North American Operations (MNAO) has spent the last three years bringing all-new, upscale vehicles to the U.S. and earning outstanding critical acclaim in the process.