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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

Mazda2 production fires up in Mexico

Mazda has officially kicked off production of the next-generation Mazda2 at the company's new factory in Salamanca, Mexico. Alongside the auto assembly plant, operations have also commenced at the facility's engine machining factory.
"With the start of production of the all-new Mazda2, operations underway at the engine machining plant, and an increase in our annual production capacity, we now have an even stronger production framework capable of supplying global markets with Skyactiv products of the same high quality level as those made in Japan," Mazda de Mexico Vehicle Operation's President Keishi Egawa said in a statement. "At the same time, we are pleased to be able to make a contribution to Mexico's further economic growth."
MMVO joins Mazda's Hofu Plant in Japan and the Auto Alliance factory in Thailand, which commenced Mazda2 production in July and September, respectively.

2018 Mazda CX-5 gets cylinder deactivation, more standard features

Mazda recently announced its new Mazda6 would feature two engines, one of which would be a naturally aspirated four-cylinder engine with cylinder deactivation. Now the company has revealed the 2018 Mazda CX-5 will also get cylinder deactivation on its sole 2.5-liter four-cylinder. For those curious, the system shuts off the cylinders on the ends of the engine to save fuel. Mazda also says that the engine has been updated in a number of other small areas to reduce friction and further improve efficiency. The company hasn't provided fuel economy numbers for the new engine, though. The updates for the CX-5 go beyond the powertrain, as all trim levels get more standard features. The base-level CX-5 Sport now comes with a leather-wrapped steering wheel and shift knob, blind spot monitoring, and rear cross-traffic warning. The mid-level CX-5 Touring now has the i-Activsense safety feature suite standard, which includes automatic headlights, rain-sensing wipers, adaptive cruise control, lane departure warning, and lane keeping assist. This suite of features is also available as an option for the first time on the Sport model. The top-level CX-5 Grand Touring gets seat memory for two settings, as well as a power-adjustable passenger seat. These updates bring very minor increases in price. The Sport trim adds another $140 over the 2017 version. The Touring jumps the most, up $335. The Grand Touring model increases $285. You'll be able to find 2018 CX-5s soon, as Mazda says they'll be arriving at dealers December 2017. Related Video: Featured Gallery 2017 Mazda CX-5: First Drive View 25 Photos Image Credit: Mazda Green Mazda Crossover SUV mazda cx-5