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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

2019 Mazda CX-5 Turbo First Drive Review | Two-row crossover perfection

Listen: If you're shopping for a crossover, and by all accounts most Americans are, there is no better option on the market than the 2019 Mazda CX-5. When we test drove the all-new 2017 CX-5, we were astounded by its marked improvements over the already-great previous generation. We noted then its biggest drawback was its average 187 horsepower. The CX-5 didn't feel slow, and it certainly made up for it in other ways, like by delivering superior road-hugging abilities. But, it was probably enough to turn off buyers who do their shopping by analyzing spec sheets. For 2019, Mazda addressed that exact issue with a vengeance. With an all-new 2.5-liter SkyActiv Turbo good for 250 horsepower, the CX-5 not only leapfrogs bestselling rivals like the Honda CR-V and Toyota RAV4, but lands squarely in the realm of luxury stalwarts such as the Audi Q5 and BMW X3. When we drove the 2017 CX-5, we likened the handling to that of a Porsche Macan. Now it has the power to match. Among its direct competition, only the 2019 Toyota RAV4 breaks the 200-horsepower mark, ringing in at 203 (and the Hybrid makes an even more impressive 219 ponies), while the Honda CR-V, Subaru Forester and VW Tiguan all sit between 180 and 190. Now, to get the full herd you must fill the tank with 93 octane premium, but if you don't mind leaving a few ponies in the stable you can pump 87 octane for a slight dip to 227 horsepower. The engine adjusts with no ill effects. Even better, torque stays the same no matter what, and the stump-pulling 310 pound-feet of torque comes quick at just 2,000 rpm. The SkyActiv turbo is full of clever engineering tricks, too. There's an exhaust port restrictor, for instance, a narrower channel used only at low engine speeds. Mazda engineer Dave Coleman likened it to a thumb over a firehose, making more exhaust pressure at idle to spool up the turbo, and thus delivering more oomph when you take off from a standstill. Mazdafarians will recognize the mill as the same one that debuted on the 2018 Mazda6. It powers the CX-9 too, Mazda's highly acclaimed three-row crossover. The 3,825-pound CX-5 has 558 fewer pounds to shuffle around than its larger stablemate, making it downright snappy. However, that extra pep does come with a fuel economy penalty, 22 city and 27 highway mpg versus the naturally aspirated version's 24 city and 30 highway mpg.

2014 Mazda3 officially rated at 30/41 mpg, priced from $16,945*

It's hard not to be smitten with the 2014 Mazda3; after all, just look at it. But beyond its slick lines, we found the new compact hatch to be a pretty remarkable steer, offering up good levels of comfort and refinement, not to mention functionality and engagement. Now, there's more reason to like the 2014 Mazda3, as we've just learned that the car will officially be rated at 30 miles per gallon city and 41 mpg highway.
That 30/41 rating is for the Mazda3 sedan fitted with the 2.0-liter Skyactiv-G inline four-cylinder engine and a six-speed automatic transmission. Opting for the manual transmission retains the 41-mpg highway number, but drops the city digits to 29. Hatchback models with the 2.0-liter engine achieve 29/40 mpg with the manual 'box and 30/40 with the automatic.
Mazda also offers a larger 2.5-liter inline-four in the 3, and while a six-speed automatic will be the only transmission available with this engine at launch, the automaker has confirmed that a manual is coming shortly. With the 6AT and 2.5, the Mazda3 sedan is rated at 28/39 mpg, or 29/40 with the company's i-Eloop regenerative braking system. Hatchback models shrink those numbers to 28/37 and 29/39 mpg, with and without i-Eloop, respectively.