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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 officially hints MX-30 could get a rotary range-extender

Mazda recently penned a paean to itself celebrating 100 years in business. This, naturally, meant the document also served as a love letter to the rotary engine, since, "The joy of driving, lightweight design and the rotary engine [are] three elements that define Mazda’s DNA." One of those elements has been AWOL for eight years, since the end of RX-8 production. After years of rumor feverish enough to impress Slenderman, two years ago Mazda announced it was prepping a rotary range-extender engine for a model to debut in 2020. Here we are in the anticipated year, and we still don't know anything else about that vehicle — or perhaps we do. When Mazda debuted the MX-30 battery-electric crossover in Tokyo last year, it bore an e-SkyActive powertrain with a 35.5-kWh battery sending current to an e-motor on the front axle producing 141 horsepower and 195 pound-feet of torque. With a range of around 130 miles on the European cycle, even though the crossover was meant for markets like Europe and Japan, almost everyone chimed, "This would be perfect for that range-extender engine." The automaker has hinted at that very thing for its centenary celebration. In a paragraph touching on alt-fuel RX-7 variants, the Mazda press department wrote, "Later, the company developed a prototype Mazda2 EV with a small single-rotor engine used as a range extender. A similar system could find its way onto the Mazda MX-30, a brand new battery electric crossover SUV arriving at dealerships this year." The word "could" didn't make the leap from the printed page into the video translation of the presser, a Mazda video on "The Dream Engine" ending with footage of the MX-30 rolling under the caption, "Mazda MX-30 with rotary range extender." When asked, Mazda's head of R&D in Europe explained the battery size and resultant range with wheel-to-well considerations that factored energy input and emissions output from making the battery to exchanging the battery after 100,000 miles of driving. Since the carmaker doesn't deem the pure-electric MX-30 suited to the U.S., the question bubbling beneath the latest news is whether this revised model with more range could make it here. Given a suitably sized fuel tank that could power the little people mover beyond 150 miles on U.S. roads, and a fair price, we suspect there'd be a great deal of interest. Now, Mazda, about that rotary-powered RX-7 ... Related Video:    

Mazda reports highest profits in its 94-year history

We may only be a third of the way through 2014, but for Japanese companies, March 31 marked the end of fiscal 2014, and it was a banner financial year for Mazda's global operations. The Japanese independent saw its highest global operating profits in its nearly 100-year history. Its global operating profits were up a huge 238 percent. Yes, a 238 percent increase over 2012 to 1.36 billion euros ($1.88 billion), eclipsing the brand's previous best year, 2008, by 12 percent. Net earnings, revenue and global sales volume also saw increases over the last fiscal year.
What's most impressive, though, is where Mazda saw improvement. The notoriously rough European market was rather kind to the Zoom-Zoom brand, where sales increased 25 percent to 163,000 units. That figure was bolstered by a 35-percent sales increase in Great Britain and a 20-percent jump in Germany, Europe's two largest markets. Japanese sales, meanwhile, were up a respectable 13 percent, to 244,000 units. In China, Mazda saw a 12 percent bump.
Notice we aren't talking about North American sales? That's because Mazda only saw a moderate, five-percent gain in the New World, with sales climbing to 391,000 units in the US, Canada and Mexico. This is particularly disappointing considering Mazda has launched three critically acclaimed products (CX-5, Mazda6 and most recently, Mazda3) for the North American market over the past two fiscal years. Still, it isn't a particular reason to be concerned, as IHS industry analyst Stephanie Brinley notes. "Five percent isn't terrible," Brinley told Autoblog, saying that Mazda should see a bump in 2014 as the Mazda3 picks up steam.