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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

2018 Mazda3 gets low-speed automatic braking across the board

Though the Mazda3 is mostly carry-over for the 2018 model year, Mazda has sweetened the deal on all trim levels ever so slightly with more standard equipment. Most notable is the inclusion of low-speed automatic emergency braking on the base Sport trim. That makes the feature standard on every version of Mazda3, and it's also included on manual transmission models. Touring's big change is the inclusion of the 184-horsepower 2.5-liter engine as the standard powertrain. This means you'll only be able to get the 2.0-liter engine on the Sport trim. Finally, Grand Touring gets a lighting upgrade with self-leveling LED lights up front along with LED taillights and running lights. Mazda also supplies these additional features while barely changing prices. The Sport trim level increases by $250. The Touring trim actually drops in price by $355 for the sedan, and an impressive $1,555 for the hatchback (when compared with the existing Touring 2.5 trim level). Grand Touring pricing remains the same as the 2017 model year. Related Video:

J.D. Power dependability survey is out, but you shouldn't depend on it

J.D. Power has just released its latest automotive dependability survey, which of course has usual suspects Buick and Lexus ranking high. Those are safe and solid findings, surely. But when you look a little closer, there are curiosities. Our Consumer Editor, Jeremy Korzeniewski, offered an explanation a couple of years back for why this survey should be viewed with a degree of skepticism, and his take is worth a re-read. What jumped out at Jeremy were the relatively low spots assigned to Mazda, Subaru and Scion among the ranking of makes. Back in 2016 when he wrote his piece, they were ranked 21st, 23rd and 24th respectively. In this year's survey, Mazda ranks 15th and Subaru 26th, both below the industry average of 142 reported problems per 100 vehicles. (And Scion, of course, is in car-brand heaven.) Now, part of what is going on here is surely the fact that all automotive brands are producing dependable vehicles compared with years gone by, so the degree of variance between the best and worst on the list is not as great as it once was. "For the most part, automotive manufacturers continue to meet consumers' vehicle dependability expectations," Dave Sargent, a J.D. Power vice president, said in a statement. "A 9 percent improvement is extremely impressive, and vehicle dependability is, without question, at its best level ever." That said, when a brand like Subaru, regarded by many as mechanically bulletproof, ranks 26th, it leaves people who know cars scratching their heads. Something there does not compute. The problem, as Jeremy pointed out, is one of methodology: When he wrote his piece, there was no weighting assigned to the problems reported in the survey. And that still appears to be the case. Therefore, a problem with an infotainment system or a loose piece of trim is deemed as serious as a blown engine or leaky transmission. (And yes, infotainment is still the biggest problem across the board.) Jeremy's point: If the categories of problems were weighted, you'd see a different picture. When you look at the Consumer Reports brand rankings (subscription required), you get a very different picture. in CR's rankings, Subaru is No. 6 among brands, which, well, sounds a lot more like it. CR singles out the redesigned 2017 Impreza as a car with some new-model problems. (The BRZ had the fewest.) The two surveys jibe a little more closely when it comes to Mazda, which CR ranks 12th, a drop of six places from previous-year rankings.