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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

This is what a 1,200-hp twin-turbo 4-rotor looks like in a Miata

We've seen the diminutive Mazda MX-5 Miata swallow plenty of big engines, but New Zealand drifting ace "Mad Mike" Whiddett is roaring into where-no-man-has-gone-before territory. Wanting to replace his 515-horsepower "MADBUL" RX-7 and its twin-turbocharged, three-rotor 20B engine, his new ride is an NC-series Miata with four rotors and twin Garrett turbochargers courtesy of Pulse Performance Race Engineering. It is called "RADBUL," and expected power at standard boost is 1,200 hp, but the builders at Pulse Performance think it will get up to 1,500 hp at full boost. And yes, that exhaust exits through the hood. Four-rotor engines are actually popular - builds are detailed on forums like this one from 2007 and this one from 2008, this UK company or this Canadian company will sell you one complete - but they're usually being prepped for an RX-7. Mad Mike's choice of a Miata for this enterprise makes this about as extreme as you can get, short of throwing it into a Mazda R360. You can watch Mad Mike tell the story of the build in the video, and check out the first and second installments about the build on the Red Bull site.

Mazda teases its Tokyo-bound EV again — and it's a crossover coupe

Another 15-second teaser clip, the third so far, stars Mazda's coming electric vehicle in the role of coquette. This time we get a glimpse of the body shape, and coming as a shock to no one since Mazda practically admitted it, we'll be seeing a crossover coupe on the Tokyo Motor Show floor. Mazda says there'll be a few surprises therein, though. The overall line and detailing embody "an expansion of our renowned Kodo design philosophy" at the same time as the EV "explores new directions in design." And within the "uncompromisingly simple" form we're told to expect "a unique door concept, opening your mind." Another couplet in the press release poetry promises a "friendly expression" up front for a new segment entry embodying "futuristic values and changing lifestyles." Well then. This will be Mazda's fourth electric vehicle, but the first meant for mass production. The company built a small batch of the Mazda Demio (our Mazda2) battery electric vehicle in 2012 for the Japanese market, leasing them to government and corporate customers. The following year the automaker built a Mazda Demio EV prototype with a 330-cc rotary-powered range-extender engine. After that came the e-TPV prototype that the company's used to prove out the powertrain going into this month's show car.  The urban-focused electric runner should go on sale next year in markets like Japan, China and Europe, where dense city centers negate the need for sky-high range figures; the 35.5-kWh battery is likely to return a 150-mile range at most. As foretold in the most recent teaser, the interior will deliver an airy sense of space thanks to open spaces between the driver's and passenger's seats. Zoom-Zoom will come with EV internals, too — Autocar recently drove the eTPV prototype and lauded it for being "well-planted," "original to drive" and "more like a car in the traditional sense of the word."