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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

Illinois’ pro-union stance kills bid for Toyota-Mazda plant, report says

Mazda and Toyota are fielding bids from states eager to land its new prize: an all-new $1.6 billion U.S. plant where the Japanese automakers would jointly build electric vehicles and employ around 4,000 workers. Now we can apparently scratch Illinois off the list of contenders. According to Automotive News, the Land of Lincoln has been disqualified due to a lack of shovel-ready sites and the state's lack of a right-to-work law curtailing union membership. Mark Peterson, the president and CEO of economic development agency Intersect Illinois, told the publication he's been informed Illinois is not among the three or four finalists for the facility. It's believed those finalists are all in the South. Peterson said that "many national site consultants charged with making recommendations for corporate relocations and expansions will not even consider a state that is not a right-to-work state. In this case, the three states I am told are still in the running are all right-to-work states." The Midwest may be the ancestral home of U.S. automotive manufacturing, but the South has made major inroads in recent decades, with the likes of Honda, Mercedes-Benz, Nissan and Toyota all opening plants there, among others, thanks to lucrative tax incentives and the absence of labor unions. Recent years have also seen so-called right-to-work laws, which prohibit union dues and membership as a condition of employment in organized workplaces, spread to traditional labor strongholds such as Michigan and Wisconsin. The new joint venture plant, which would start operating in 2021, would be capable of producing 300,000 vehicles a year, with production divided between the two automakers. Mazda and Toyota would also take small stakes in one another as part of the deal. It's expected that at least 15 states have submitted proposals to attract the plant. Expect the Illinois news to trigger a new round of debate over the role of organized labor in the modern economy.Related Video: Image Credit: Reuters Green Plants/Manufacturing Mazda Toyota

Confirmed: Mazda Miata gets more power, higher redline, telescoping wheel

Our friend over at Road & Track, Bozi Tatarevic, has a keen nose for stuff just like today's Miata news, and he spotted an article by the Japanese car magazine Car Watch that details Mazda's upcoming updates. Car Watch actually got to drive the car, too. There's a lot to go through, but the highlight has to be confirmation of what we told you earlier this year about a significant power bump: The Miata will indeed get an increase of 26 horsepower, from 155 to 181. But the power's not the whole story. Mazda has increased the redline from 6,800 RPM to 7,500. It's not clear at this point where torque and power peaks are in the rev range, or how these changes affect low-speed drivability, but more revs are almost always a good thing and aren't likely to detract from the roadster's fundamental goodness. Car Watch reports that lighter pistons and connecting rods are fitted to help reduce rotational mass in the 2.0-liter inline-four. Some valvetrain changes were needed to support the higher redline, mainly stiffer valvesprings to prevent valve float. Mazda also changed the shape of the valves and optimized the intake ports to breathe better at higher RPM. The inner diameter of the exhaust ports were increased to flow better through a new muffler better tuned to the engine's new operating range. This confirms and gives a little more detail to what we reported earlier based on a leaked document from Mazda Canada. Car Watch also confirms that the revised Miata will get a low-inertia dual-mass flywheel, which should help absorb some vibration, noise and harshness from the higher-revving engine without losing too much of the directness that a single-mass flywheel provides. Mazda usually gets stuff like this right, so while we won't know until we get a chance to drive it whether the DMF feels "right," we're not too worried about it. There's also a telescopic steering wheel, a first in any Miata, which has a range of about 1.1 inches. That doesn't sound like much, but it should help folks with longer legs reach the wheel without having to crank the seat forward. Interestingly, Car Watch reports that the telescoping wheel was opposed by some in the company seeking to save every fraction of an ounce of weight, and to get it through, the company apparently had to change some of the material in the upper steering column from steel to aluminum to satisfy the weight-conscious. Little details like these are fantastic.