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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

Ford, Toyota clean up in Best Car For The Money Awards

The U.S. News Best Cars for the Money Awards picks winners by looking at the average transaction price, five-year total cost of ownership, the regard a car has from the automotive press, reliability figures from J.D. Power and Associates and safety data from the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety. The result, according to the magazine, is "the best combination of critical acclaim and long-term value."
Ford nabbed six of the 21 categories that received awards this year, the Focus, Fusion, Fusion Hybrid, Taurus, Escape and Edge getting trophies. Toyota and its Lexus and Scion sub-brands took another five, the Tacoma and Tundra owning the two categories given to pickup trucks. The other ten awards were split between Honda with three, Buick with two, and one each for Subaru, BMW, Hyundai, Chevrolet and Mazda.
Follow the link to see all the winners and read about why they were chosen.

Mazda Hazumi concept presages next Mazda2

Looks like Mazda's big Geneva Motor Show debut is actually something quite small. Teased here, the Hazumi concept "points the way to the future" for the brand's subcompact offering, the Mazda2. Details are slim as of this writing, but from what we can see in the image above, the Hazumi will use the same Kodo design language found on the Mazda3, Mazda6 and CX-5. We're big fans of this styling direction, so we fully expect the concept to be quite an attractive little number.
Hazumi means "bound" or "spring up" in Japanese, with Mazda saying this nomenclature is "particularly well-suited to a small car that appears to be bursting with energy." In other words, say goodbye to the friendly faced Mazda2 we've enjoyed since it launched in the United States in 2010. Instead, prepare for something decidedly more assertive, hopefully improving upon the already-great driving dynamics of the current subcompact. If we're honest, we can't wait.
Mazda will also use the Geneva show to debut its new small-displacement, 1.5-liter Skyactiv-D diesel engine. The automaker hasn't confirmed that this new fuel-efficient powerplant will be part of the Hazumi concept package, but considering the two are debuting alongside each other, it would seem to make sense. As for whether or not this engine could come stateside when the next Mazda2 launches, we're not holding our breath for that, especially considering the company's current woes with US-spec diesel engines.