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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 will have a new rotary concept at Tokyo show, trying to bring it to production

Despite ending production of the rotary engine in 2012, Mazda has repeatedly insisted that it's still working on rotary engine tech, and it has continued to tease a potential future rotary car with concepts, the latest of which was the RX-Vision. The company even continues to file patents on rotary tech. It seems the company is continuing this pattern, since the vice president for Mazda's European R&D center told Auto Express that it has another rotary concept ready for this October's Tokyo Motor Show. According to Auto Express, the car expands on the groundwork laid by the RX-Vision concept. In addition to revealing the existence of the concept, the executive also reiterated the fact that there's still a team in Mazda working on the rotary engine, and people are still trying to make a business case for a new rotary sports car. Auto Express expects a production car could come in 2020. The news outlet also asked if the hypothetical car would be hybridized, and the Mazda executive didn't give much of an answer beyond it being possible, though he would prefer a purely rotary-powered car. We at Autoblog think a hybrid rotary of some sort would make the most sense. It would make for an impressive halo vehicle that could be used to promote future Mazda hybrids. This would also help with the business case side of things. An electric motor, or motors, would be highly complementary to the rotary engine as well. Electric motors produce oodles of torque from down low, which rotaries don't, and the rotary engine's high-rpm horsepower would compensate for the electric motors when they've started running out of power. Not only that, but using a hybrid powertrain could help a thirsty rotary engine meet fuel economy and emissions requirements while still producing plenty of power. A hybrid system is also more possible now that Mazda is teamed up with hybrid expert Toyota. Related Video:

Japan plans real-world diesel emissions test after companies fail

Japan's transport ministry plans to start real-world diesel emissions tests after an experiment found four models from Toyota, Nissan, and Mitsubishi that produced more nitrogen oxide (NOx) emissions than the nation's rules allow, according to The Japan Times. Regulators there usually only perform emissions checks in the lab. The VW diesel scandal has everyone double-checking their figures. Diesel versions of the Toyota Hiace van, Land Cruiser Prado, and Nissan X-Trail produced up to 10 times more NOx than allowed. The Mitsubishi Delica D:5 was up to five times over the limit, The Wall Street Journal reports. There was no evidence of defeat devices in the vehicles. Mazda performed well in the experiment, though. The CX-5 passed with nearly the same results on the road and in the lab. The Demio, better known as the Mazda2, did nearly as well with only slighter higher figures in the real world than in the controlled setting. The experimenters theorized the reason for the excessive emissions was that cold weather caused the engines' software to shut off the exhaust gas recirculation to prevent damage, according to the WSJ. However, this behavior also increased NOx production. Toyota, Nissan, and Mitsubishi don't have to worry about punishment from the transport ministry because this check was just an experiment. Their models already passed the mandated lab tests, which was the only requirement, according to The Japan Times. As governments begin greater real-world emissions tests, the results suggests diesels aren't very clean. A recent check in France found models from Ford, Renault, and Mercedes-Benz that didn't perform up to the standards. Regulators in India conducted similar evaluations and ordered VW to recall over 300,000 vehicles. Related Video: