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Toyota, Mazda form electric car technology venture

TOKYO — Toyota has established a new venture to develop electric vehicle technology with partner Mazda, seeking to catch up with rivals in an increasingly frenetic race to produce more battery-powered cars. Policymakers in key markets like China are pushing a shift to electric cars over the next two to three decades, while relatively new rival Tesla is gaining momentum and diesel cars are going through the fallout of the Volkswagen diesel scandal, pressuring traditional automakers to crank up plans for fully electric vehicles (EVs). At the same time, declining battery costs are enabling more power to be packed into cars, making an electric car future easier to imagine. Toyota said in a statement the new company will develop technology for a range of electric cars, including mini vehicles, passenger cars, SUVs and light trucks. Toyota will take a 90 percent stake in the joint venture, called EV Common Architecture Spirit Co Ltd, while Mazda and Denso Corp, Toyota's biggest supplier, will each take 5 percent. The plans build on a partnership announced in August when Japan's biggest automaker agreed to take a 5 percent stake in Mazda and two said they would jointly develop affordable electric vehicle technologies. Although Toyota is providing most of the financial firepower and existing EV know-how, Mazda's engineers have gained the admiration of the industry with breakthrough technologies such as its compression ignition engine announced last month. Shares in Mazda surged to end the day 3 percent higher, while those in Denso rose 1.8 percent. Toyota shares were flat. Both automakers are somewhat behind rivals, with neither having a fully electric passenger car on the market yet. After years of focusing on bringing hydrogen fuel cell vehicles to the market, Toyota last year set up a division to develop electric cars which is led by President Akio Toyoda, and said it plans to introduce EVs in China in the coming years. Toyota has also announced it will bring a game-changing solid-state EV battery to market by 2022. That division would continue as a separate entity from the new joint venture, a Toyota spokeswoman said, while adding that the two teams would co-operate on technology development. Mazda has an R&D budget a fraction of Toyota's, which has made it difficult to develop electric cars on its own. Even so, it has said it plans to launch EVs in 2020.

2019 Mazda CX-5 turbo model seemingly confirmed, doesn't come cheap

We reported last month on some leaked documents that announced the 2019 Mazda CX-5 would get the turbocharged 2.5-liter four-cylinder as an option, and it's looking even more official now that additional documents have appeared on Reddit. The new information comes from a "Product Information Bulletin" that not only confirms the engine's availability but reveals pricing, trims and feature sets for the new model year. As it turns out, the turbo CX-5 won't be cheap. The base price for a CX-5 with that engine will be $35,865 with destination. That's about $5,500 more than the cheapest turbocharged Mazda6. There are a couple of reasons for this. The turbo engine will only be available on two new high-end trims for the CX-5, Grand Touring Reserve and Signature. Both of those trims bring a variety of high-end features and options with them. It can also only be paired with all-wheel drive. The Mazda6 turbo engine is available on the slightly lower Grand Touring trim and is only paired to a front-drive drivetrain. Conspicuously absent from the 2019 documentation though is the elusive Skyactiv-D diesel engine. This is strange, since the engine has been rated by the EPA, so it's presumably ready for introduction to the U.S. market. We'll be curious to learn that engine's fate. We could see the turbo gas engine threatening the diesel's U.S. introduction, since it delivers the same amount of torque as the diesel with more horsepower. Plus the diesel didn't get amazing EPA numbers. But that's just speculation on our part, and it's entirely possible the diesel will still come here. The rest of the CX-5 lineup sees some welcome upgrades, too. The infotainment on CX-5s starting with the second-lowest Touring model will get standard Apple CarPlay and Android Auto compatibility. All models also will receive G-Vectoring Plus. The feature, along with the turbo engine option, was announced for the Japanese CX-5 recently. What this system adds is a little bit of braking force to the outside wheel as the driver winds the wheel back to a straight position when exiting a corner or completing a lane-change. The idea is that it helps make the car more stable when straightening out after a turn. Also, although the turbo CX-5 models will be rather pricey, the other CX-5 models won't change much in price. The base Sport trim starts at $200 more than the 2018, the Touring model increases just $100, and the Grand Touring goes up by $400.

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