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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

The 2017 Mazda CX-5 is new, and oh so very red

After examining the teaser photo and poring over spy photos, we knew that the 2017 Mazda CX-5 would adopt some design features from the larger CX-9 and Chinese-only CX-4. What we didn't know, though, is that the CX-5 would look like a miniature version of the CX-9. From the outside it's obvious the design is all new. The front of the SUV looks nearly identical to that of the CX-9's. Gone is the cutesy, roundish face in favor of a more angular theme. The headlights are slimmer, while the grille ditches the horizontal bars for a mesh pattern. Mazda calls the design theme Kodo - soul of motion, and the original 2013 CX-5 was the first production model under this mantra. View 12 Photos The changes at the back are less drastic than on the CX-5's new beak. The black trim that underlines the rear fascia is less prominent and the taillights looks leaner, but it's harder to tell the differences between the old and new model. Mazda says the CX-5 will be available with two engines here: the Skyactiv 2.5-liter gasoline engine and the Skyactiv-D 2.2-liter diesel (the Skyactive-D 2.0-liter, currently only used on Sport models, has been dropped for our market). We don't have specifics on power and torque yet, but in the old CX-5 (and current Mazda 3) the 2.5-liter four-cylinder generates 184 horsepower, while the diesel makes 173 hp and 310 pound-feet of torque. We expect front- and all-wheel-drive options, and of course we're hoping that the six-speed manual (previously on the base, front-drive model only) stays around as an alternative to the six-speed automatic. The interior follows the template of recent Mazdas, with the infotainment screen sitting on top of the dashboard with a control knob located aft of the shift lever. We'll have more information on the 2017 CX-5 at the vehicle's debut later today at the 2016 Los Angeles Auto Show. Related Video:

2020 Mazda CX-3 adds active safety features plus Apple CarPlay, Android Auto

The CX-3, Mazda's smallest crossover offering, shrinks its showroom footprint for 2020, as the brand makes room for the newly introduced CX-30 just above it in the lineup. The 2020 CX-3 is cut back from three trim levels to just one, although that single offering is bolstered with additional standard equipment including Apple CarPlay and Android Auto, which come to the CX-3 for the first time. Even more significantly, Mazda is adding as standard a batch of active-safety features that includes forward collision warning with automatic emergency braking and pedestrian detection, lane departure warning, adaptive cruise control with stop-and-go, and automatic high beams—formerly an option package costing $1,100. Blind-spot monitoring and rear cross-traffic alert were already standard and continue. The 2020 CX-3 also gains automatic climate control, a head-up display, rain-sensing wipers and LED exterior lighting. For all that, the 2020 CX-3's prices rise just $250 over the 2019 CX-3 figures. The starting figure for the 2020 Mazda CX-3 Sport is $21,685 with front-wheel drive or $23,085 with all-wheel drive (including $1,045 destination). The other news for the 2020 CX-3 is that the Touring and Grand Touring trims have been dropped. Which means that the features exclusive to those trims, such as leather seating surfaces, a power sunroof, heated seats, a heated steering wheel, and a power driver's seat, are no longer offered. Buyers seeking those niceties perhaps are now expected to step up to the CX-30 — although it's not a big leap, with the CX-30 starting at $22,945.