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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

Live pics of 2014 Mazda3 from NYC, sedan on its way

Here it is, ladies and gentlemen, straight from the memory cards of our own cameras. As you can see, the only version of the 2014 Mazda3 that the automaker is showing off at the moment is the hatchback, but we've gotten confirmation from Mazda that the sedan version will be shown sometime within the next five weeks.
So far, Mazda isn't commenting on whether or not we can expect a higher-performance Mazdaspeed3 version of the car, but we've got our fingers crossed. In any case, we're quite drawn to the appearance of this new hatchback from Mazda, with its flowing lines and character creases setting it apart from the rest of the compact segment in which it competes.
We also appreciate the sound engineering that went into the new 3. Despite boasting a wheelbase that's longer than the car it replaces, we're pleased to see that Mazda has kept its exterior size in check - it's actually shorter overall than the last-gen model - while also reducing weight by about 200 pounds. That's bound to be good for the new 3's dynamic properties.

Mazda engineers urging execs for more RWD models

According to Edmunds, Mazda engineers are pressuring the company to create more rear-wheel-drive models, in an effort to better differentiate itself from its rivals. This push is reportedly coming from middle and senior engineers within the company, and these folks at Mazda believe this rear-drive strategy would allow the automaker to produce more distinctive, fun to drive cars. Mazda discontinued the rear-drive (and rotary-engined) RX-8 a few years ago, leaving the MX-5 Miata as the company's only RWD offering.
As enthusiasts, we're fully on board with Mazda offering more rear-drive cars, but unsurprisingly, the company's top management isn't exactly keen on the idea - and with good reason. First and foremost, the cost associated with redesigning fresh architecture for new models would be very high, and considering the fact that Mazda hasn't exactly been raking in the dough lately, an expensive new venture like this doesn't make a whole lot of sense. What's more, Mazda's latest front-drive models - the Mazda3, Mazda6 and CX-5 - have been very well-received, and are helping the company gain sales momentum.
But that doesn't mean there aren't other options. Edmunds reminds us that Mazda is already partnering with Alfa Romeo on the next-generation Miata, and if this collaboration is successful, perhaps the relationship could bear additional fruit. After all, Alfa Romeo is said to be working on returning to its rear-wheel-drive roots, so Mazda's engineers might be able to make a case for more RWD goodness after all.