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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

How Mazda got Skyactiv-X to work is incredible

"Take everything you know about engines and turn it around," Mazda North America Vehicle Development Engineer Dave Coleman says, patiently and with a look of benevolent pity, as he's quizzed about the particulars of the company's new engine. The Skyactiv-X engine is enigmatic — and deceptively simple in operation. And the bottom line for American consumers is that they'll be able to buy a car (or crossover; we don't know yet what vehicle will first get it) by late 2019 that provides diesel-like fuel economy but runs on regular old gasoline. In between diesel and spark ignition, but it's neither To truly understand it, you have to dive into the contradictions. Take that regular old gasoline: Contrary to common sense, the lower the octane, the better it works. In the lab, the Skyactiv-X engine loves 80 octane. The lowest Americans get is 87, so the engine is tuned for that octane. Go higher and you lose some low-end torque. Coleman was right. It's hard to wrap your head around an engine that thrives just at the point when most gas engines would aggressively self-destruct. It uses a supercharger to pump additional air — but not additional fuel. It uses spark plugs to start a combustion cycle that normally doesn't need a spark. And, quixotically, it's not displacing Mazda's own American-market diesel engine, currently languishing in a seemingly endless hell of regulatory approval. More bizarre: Mazda is a tiny automaker facing real existential headwinds, and gasoline compression ignition is a massive challenge. GM and Hyundai announced compression ignition, or HCCI, projects (full name, homogeneous charge compression ignition) to great fanfare, but they never amounted to a production hill of beans, crippled by reliability issues or horrible vibrations. Worse, they only worked at an unusably narrow range — low RPMs and low loads. HCCI research improved direct-injection gas and diesel engine technologies for these companies, but HCCI itself remains untamed. The benefits of lean combustion Why even try to tame HCCI? The answer is much better fuel economy and lower emissions. Less burned carbon-based fuel, less carbon dioxide released. That's simple. But there are some thermodynamic reasons for the lean combustion you can achieve with compression ignition that are worth explaining. The ideal amount of fuel for a conventional engine to burn is about a 14:1 air-to-fuel ratio. That lets every molecule burn nicely, in theory.

Mazdaspeed3 concept tipped for Frankfurt debut

The last quarter of 2015 could be a big one for Mazda as a report has emerged from Australia claiming that the company will come to the Frankfurt Motor Show in September with a near-production concept of the third-generation Mazdaspeed3, while a second-generation CX-9 will be shown a few months later in Los Angeles. Motoring.com.au ran the initial report, and although the news seems plausible, the outlet doesn't provide sources for either piece of news. Likewise, our friends at Mazda USA refused to comment on "speculation." Speculation it may be, but it's surely tantalizing considering the recent popularity of both the hot hatch and three-row crossover segments. According to the Aussies, the concept Speed3 will quickly evolve into a production model, which will launch alongside a mid-cycle refresh for the current 3. A turbocharged 2.5-liter will spit out 295 horsepower, and could have all-wheel drive. Even if only the front axle is doing the work, the MS3 will easily be able to stand toe-to-toe with hotter half of the segment based on output alone. As for the more mundane offerings, Motoring reports the long-in-the-tooth CX-9 will get a replacement in LA, although it doesn't offer much in the way of details beyond that. It should be interesting to see how the company's Skyactiv philosophy will be implemented on such a large vehicle. Perhaps the biggest surprise from the Australian report, though, are the outlet's reports on the CX-7, which will return sporting a third row of seats after its larger sibling debuts. That'd give Mazda a versatile lineup of four crossovers, with the sub-compact CX-3, the compact CX-5, the midsize, seven-passenger CX-7 and the fullsize CX-9. As we weren't able to confirm any of this with Mazda, we'd still warn that this news should be ingested with grains of salt. Still, it looks like the company could be set to make some waves in the first two shows of the upcoming auto show season.