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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

Mazda Skyactiv-D racer first diesel to run at Indy in 60 years

While it may not be touting the old "Win on Sunday, sell on Monday" axiom we all know and love, Mazda recognizes that racing can only improve its cars. And so it's no surprise that the Japanese automaker is testing and refining its Skyactiv-D diesel engine by sending it out on various race tracks around the country - notably being the first diesel ever to compete at Daytona and the first to notch a Grand Am win at Road Atlanta.
Next up? Indy. It has been over 60 years since a diesel-powered machine ran at the Indianapolis Motor Speedway, and the Cummins-powered racer that competed in the 1952 Indy 500 with a 6.6-liter inline-six-cylinder oil-burner was a fast and brutal machine that set a new lap record in qualifying leading up to the race. Though that car was withdrawn with turbocharger failure 71 laps in, its diesel powerplant left an indelible impression on the racing community, and that's something Mazda hopes to accomplish once again.
Mazda says that the diesel engine in its race car is pretty darn close to stock - 51 percent stock by parts count, and 63 percent stock by weight - which means the way it performs in competition is at least a somewhat meaningful way to the stock engine's durability in the real world. Check out the image of the Mazda6 Skyactiv-D racer posing alongside the 1952 Cummins above (click to enlarge) and feel free to peruse the press release below for the rest of the details.

Mazda working on lithium-ion batteries to replace lead-acid starter batteries

In the quest for ever better fuel economy, car companies are looking for every single advantage possible, no matter how small. This is evident in everything from active grille shutters to the 48-volt mild-hybrid electric assist systems like that in the new Ram 1500. For Mazda, the latest target for potential efficiency gains is the lowly 12-volt starter battery. The company announced that it is partnering with two other companies, ELIIY Power and Ube Industries, to develop a lithium-ion starter battery that would be used on mainstream models in place of conventional lead-acid units. Mazda plans to have them ready for use by 2021. The advantage here would be that 12-volt lithium-ion batteries would be much smaller and lighter than the lead-acid ones they replace. And lighter cars don't need as much fuel to move around. Plus, as an added benefit, making cars lighter also often makes them faster and better handling. This is why companies such as Lotus and Porsche have offered optional lithium-ion 12-volt batteries for some lightweight sports cars. A potential downside to the use of these batteries is increased cost. Lead-acid batteries from your local parts store will run you between $100 to $150. AGM batteries could be between $200 and $300. As for lithium-ion batteries, Lotus introduced the option on the Evora 400 in 2016, and the option cost $1,690. Odds are that a company such as Mazda won't be absorbing all those costs, meaning that the cost of these future Mazdas could increase with a change from lead-acid to lithium ion. Related Video: