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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.

Mazda shows lightweight MX-5 Spyder and Speedster at SEMA

Ever since Mazda dropped the first teaser on us last week, we've been looking forward to seeing what it had in store for us at SEMA this year. Now we've seen it what Mazda has dubbed the MX-5 Spyder and MX-5 Speedster, and they were worth the wait. The Spyder goes vintage with a silver paintjob and a brown top stretched overhead. It also has an aero kit, grille, and tonneau cover done up in carbon fiber, rides on 17-inch wheels, and features a natural leather interior. The blue Speedster, meanwhile, goes for the stripped-down, wind-in-your-hair experience. It has no roof or windshield, just a tiny deflector at the front of the dashboard. It's dropped an inch closer to the ground on an adjustable coilover suspension with 16-inch alloys, and features a center-exit exhaust. Carbon fiber helps trim 250 pounds from the curb weight, along with a stripped out interior trimmed in Alcantara. Both look pretty slick, and disappoint only in so far as they (like so many of their predecessor concepts) won't be heading for production. If they were, we'd be hard pressed to choose between the two. Which would you go for? Mazda Reveals Extreme Lightweight Design Concepts at 2015 SEMA MX-5 Concepts Display Two Different Takes on Staying True to Pure, Lightweight Sports Car Philosophy LAS VEGAS (November 3, 2015) – Mazda revealed two design concepts today at the SEMA Show in Las Vegas, based on its all-new 2016 MX-5 Miata—MX-5 Spyder and MX-5 Speedster—demonstrating two vastly different takes on lightweight, open-air performance. Lightweight. Fun-to-drive. Roadster. Those three tenets have served as the foundation for the Mazda MX-5 Miata since its 1989 introduction and continue to serve the new fourth-generation model. Focused, lightweight engineering is a guiding principle of every Mazda vehicle made with SKYACTIV Technology, allowing for greater efficiency, improved performance and agile handling dynamics. But what if that sense of lightweight performance were taken to the extreme? What if Mazda's North American designers harkened back to vintage roadsters to create thoroughly modern, bespoke concepts for what a lightweight performance car should be The results would be the MX-5 Spyder and MX-5 Speedster concepts. "Both MX-5 Spyder and MX-5 Speedster are uncompromising designs that highlight the core strengths of MX-5," said Ken Saward, design manager, Mazda North American Operations.