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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 MX-5 Miata goes Head 2 Head with Subaru BRZ

It's a battle that's been in the making for some time now: the Subaru BRZ versus the Mazda MX-5 Miata. And now that the new Miata has arrived – and in Club spec to boot – that's exactly what Motor Trend has lined up for its latest episode of Head 2 Head. Now before you go screaming that one's a coupe and the other a convertible, take a few commonalities into account. Roofs aside, both feature a 2.0-liter four mounted up front, driving the rear wheels through a six-speed manual transmission. Both are made by Japanese automakers and cost around $25-30k, give or take. Both produce around the same amount of torque, and while the Subaru may be more powerful, the Mazda's considerably lighter. To create a more even contest, then, you'd have to line a BRZ up against a Scion FR-S, or the MX-5 against the upcoming Fiat version of the same. Of course, being that close on paper doesn't mean that it's a draw. One has to come out on top. And after taking both along country roads and the Streets of Willow racing circuit, our friends at MT have picked one over the other. You'll want to watch the 22-minute video above (or at least skip ahead to the end) to see which came out on top, but if you're as enthused by a purist driver's car as we are, you'll enjoy every minute of it. News Source: Motor Trend via YouTube Mazda Subaru Convertible Coupe Economy Cars Performance Videos motor trend mazda mx-5 head 2 head

Mazda rotary engine returning in 2019 as EV range extender, exec says

It seems that a range-extended Mazda electric car with a rotary engine is for real, and coming sooner than expected. An automotive news outlet from the Netherlands called AutoRAI spoke with Mazda's European vice president for sales and customer service. He told the outlet that Mazda has an electric car coming In 2019, and it will be available with a rotary engine as a generator. Among the details about this car and its powertrain, he said it would be similar in size to the Mazda3, and it might even be a crossover. It will also be based on Mazda's upcoming modular small car platform. The rotary engine will only generate electricity and will only have one rotor. Not only that, it will be mounted horizontally. This is particularly unusual as every rotary Mazda has had the engine mounted upright. We've reached out to Mazda representatives in the U.S. and Europe. An American representative couldn't comment on what type of range-extender options may be coming in the future. We say this specifically because Mazda has confirmed previously that an EV with an available range extender is coming in 2019. We have not heard back from a European representative at the time of publishing. Despite this, a return of the rotary as a range extender looks probable. Besides the dates fitting with Mazda's electric plans, there are other tidbits from the past that support the idea. Mazda has been experimenting with the idea for years, and even created a functioning Mazda2 EV with a rotary range-extender. The company has also filed patents in the U.S. for the setup as recently as last year, and there have been other recent rumors. Related Video: Featured Gallery Mazda RX-Vision Concept: Tokyo 2015 View 11 Photos Image Credit: Autoblog Auto News Green Rumormill Mazda Technology Emerging Technologies Electric Mazda rotary mazda ev rotary range extender