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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 development chief discusses future rotary platform

The switch can again be flicked from "The Rotary Engine is Doomed" to "The Rotary Engine Lives!" Mazda is re-tooling the once nearly forgotten rotary to work as a range extender for hybrid vehicles, with a chance for it to do even more than that. The latest information sounds rather promising for those still holding out a candle for the rotary. Mazda's powertrain development chief, Ichiro Hirose discussed future rotary plans with the Australian Drive at the CX-30 crossover's launch. Hirose told Australia's Drive that Mazda is currently working with a very flexible and efficient rotary hybrid platform that doesn't necessarily come with the heavy emissions and fuel consumption baggage the rotary engine has earlier been saddled with. Hirose calls the rotary-based solution "XEV," referring to its adaptability. "It has the generator function and also it can be used to provide the drive force to give you traction. [...] Because the rotary engine is compact in terms of its packaging size [and] if we should choose to do so we can have the generator, rotary engine and electric motor all in one [driveline] because of the small packaging." The result is an electrified platform that could be made to work as a mild hybrid, series hybrid or a battery electric vehicle with a rotary range extender (if given a plug), depending of the required implementation. It's as if Mazda had a slider to adjust the balance of using a rotary engine and using electric power, to make the platform more of a jack-of-all-trades. Hirose explained: "If you reduce the other way around it could be a pure battery-electric, using really the rotary engine as a range extender and, according to the balance, you can even provide something akin to the series hybrid that is providing the drive force. [...] So, we are looking at a wider coverage and scope. Based on this architecture it allows us to do that, to explore the huge range of applications we can have with the rotary." The platform would also be flexible when it comes to meeting various stringent emissions standards. To be able to sell XEV-based vehicles globally would mean introducing a certain setup for one region and one for another, keeping in mind when the rotary power would kick in and how. While Hirose keeps the question open whether these vehicles would make it for sale in the United States, he says Mazda would be able to make them pass U.S regulations. "I'm just saying that — theoretically — if we were to introduce it in the U.S.

Mazda pits 2016 MX-5 Miata against the original

Mazda has toiled admirably to keep the latest MX-5 Miata true to the spirit of the original. But just how close did the team come? To find out, the Japanese automaker brought two bookending examples of its iconic roadster down to a racetrack in Spain and put them in the hands of a couple of endurance racing drivers – Jade Paveley in the original, Owen Mildenhall in the new model. Whichever crossed the finish line first at the end of one lap would win. And because 25 years of progress wouldn't exactly make it a fair match, they gave the original a four-second head start. Watch the video above to see how it went down. Related Video: