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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

2015 Mazda2 spotted on the road

When Mazda unveiled the Hazumi Concept at the 2014 Geneva Motor Show, our excitement for the next Mazda2 increased considerably. The Hazumi looks to retain much of the driving character that makes the current 2 one of the very best cars in its segment while infusing it with more aggressive styling. Of course, when the 2 arrives, it won't look exactly like the Hazumi. That's why these spy photos are so important.
This is our very first look at the next-generation 2, and although the Hazumi influence might be difficult to discern, thanks to the swirly camo, it's still there. The grille shape and the headlights are very similar in shape to the items shown on the concept, while the camouflage disguises the shape of the greenhouse, which looks somewhat like the Hazumi.
What we can't see, though, is under the hood. That's where our spies come in, reporting that a pair of 1.5-liter SkyActiv engines will see action in the tossable 2. The former, which we'll almost certainly see in the US, is a gas-powered mill found in the Euro-spec Mazda3. In the larger 3, it produces 99 horsepower and 111 pound-feet of torque, which is broadly similar to what the current 2's 1.5-liter pumps out. The other engine, a 1.5-liter SkyActiv diesel, probably won't be making the trip, although we'll continue to hope.

Mazda teases its Tokyo-bound EV again — and it's a crossover coupe

Another 15-second teaser clip, the third so far, stars Mazda's coming electric vehicle in the role of coquette. This time we get a glimpse of the body shape, and coming as a shock to no one since Mazda practically admitted it, we'll be seeing a crossover coupe on the Tokyo Motor Show floor. Mazda says there'll be a few surprises therein, though. The overall line and detailing embody "an expansion of our renowned Kodo design philosophy" at the same time as the EV "explores new directions in design." And within the "uncompromisingly simple" form we're told to expect "a unique door concept, opening your mind." Another couplet in the press release poetry promises a "friendly expression" up front for a new segment entry embodying "futuristic values and changing lifestyles." Well then. This will be Mazda's fourth electric vehicle, but the first meant for mass production. The company built a small batch of the Mazda Demio (our Mazda2) battery electric vehicle in 2012 for the Japanese market, leasing them to government and corporate customers. The following year the automaker built a Mazda Demio EV prototype with a 330-cc rotary-powered range-extender engine. After that came the e-TPV prototype that the company's used to prove out the powertrain going into this month's show car.  The urban-focused electric runner should go on sale next year in markets like Japan, China and Europe, where dense city centers negate the need for sky-high range figures; the 35.5-kWh battery is likely to return a 150-mile range at most. As foretold in the most recent teaser, the interior will deliver an airy sense of space thanks to open spaces between the driver's and passenger's seats. Zoom-Zoom will come with EV internals, too — Autocar recently drove the eTPV prototype and lauded it for being "well-planted," "original to drive" and "more like a car in the traditional sense of the word."