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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

Cedar Rocket is the fastest all-electric log car in the world

An electric turbine manufacturer, a mechanic, and a log house builder walk into a bar. No, wait. The three are standing around at Barrett-Jackson a few years ago, talking about the world. What's the eventual punchline? An all-electric vehicle mash-up of a Mazda RX-8 and a giant piece of wood. One that was just awarded a Guinness World Record for "fastest motorized log." "Truly, what else would you think of?" - Bryan Reid, Sr. Bryan Reid, Sr., star of the reality show Timber Kings, is the log house builder in the set-up above, and he's now the proud owner of Cedar Rocket. He told AutoblogGreen that a log-based EV is the natural result of the three guys chatting. "Truly, what else would you think of?" he said. "I mean, really? There has to be something to come out of it other than girls. It was crazy, but it's a good story and nobody gets hurt. It's hard to make the news when everything's positive." Idea in hand, Reid and his friend set off to actually build the car. Gerald Overton, the mechanic, turned the Mazda into a welcoming recipient, working on the disc brakes, axles, frame, differential, and suspension. While the presence of a television producer kept things moving, Reid said that it still took almost two years. "It started out, not as a joke, but as something very light," he said. "You put a log on a couple of axles and 'ha ha.' It ended up taking many thousands of hours. We don't do anything halfway." In the end, Reid and the team took the Cedar Rocket to the Wild Horse Pass Motorsports Park in Chandler, Arizona and managed two runs of 55 miles per hour within an hour (that's what Guinness required to hand out the official record). The Rocket is incredibly stable – heavy batteries help there – and Reid pointed out that because the EV uses electric turbines, it's not a quarter-mile car. "It's more like a salt-flat car," he said, because the "turbines that take a while to spin up." Given the right conditions, Reid said the team thinks the Cedar Rocket could go 120-130 mph. "It's crazy because it's different." But the point of this car isn't to just go fast. The builders will bring the car to Barrett-Jackson and auction it off next year, but before that it will make the rounds at places like SEMA and a number of unexpected events, like golf shows. The point is to get attention and raise money and awareness for veterans groups. "I believe it's for the best cause in North America," he said.

Will the new Mazda Miata be available with multiple engines?

At this point, the countdown until the launch of the all-new, fourth-generation 2016 Mazda MX-5 Miata can be measured in hours until its September 3 unveiling as easily as it can in days. With the debut of such a highly anticipated model so close, the rumors about the new sports car are starting to boil over.
We recently heard that the new Miata would likely get a 2.0-liter Skyactiv four-cylinder with a six-speed manual, plus a decent drop in weight compared to the current gen. There's even the rumored possibility of a fastback coupe version sometime in the future.
Now, Australia's GoAuto is adding another dollop of speculation into the mix with the claim that there could be "potentially more engine options," according to Mazda Australia managing director Martin Benders to the website. The more potent option would still be the 2.0-liter Skyactiv with a power bump from its current 167 hp to closer to 200 ponies. The other possible powerplant option would be a 1.5-liter, naturally aspirated four-cylinder taken from the upcoming Mazda2 replacement. This version would also ditch some of the MX-5's more premium features to cut the weight and the price slightly.