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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

Welcome Audi RS6 Avant, goodbye Lincoln Continental | Autoblog Podcast #592

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Assistant Editor Zac Palmer. Our editors cover a lot this week, starting with the news. They geek out over the Audi RS6 Avant coming to America, and mourn the loss of the Lincoln Continental. They address rumors of the Toyota Land Cruiser's demise, and analyze spy photos of the Ford Mach E electric crossover. They also honor the memory of the godfather of spy photography, Jim Dunne. Finally, they talk about driving the BMW Z4, Ram 1500 EcoDiesel, and another diesel, the diesel-powered Mazda CX-5 Skyactiv-D. Autoblog Podcast #592 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Audi RS6 Avant headed to U.S. Lincoln Continental discontinued Rumor: Toyota Land Cruiser to be canceled Ford Mach E spied RIP spy photographer Jim Dunne Cars we're driving: 2019 BMW Z4 sDrive30i 2020 Ram 1500 EcoDiesel 2019 Mazda CX-5 Diesel Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:      

2019 Mazda CX-5 debuts with turbocharged engine and near-$40K price tag

We've seen a couple different leaks concerning the 2019 Mazda CX-5, but now Mazda finally has official word on what's coming our way. One exciting development is the addition of the 2.5-liter turbocharged four-cylinder engine on higher trim levels. It's great to see Mazda sharing that engine to other models after originally debuting in the larger CX-9. In the CX-5, it makes 250 horsepower and 310 pound-feet of torque on 93 octane. To get the boosted engine, you'll have to opt for one of the two new trim levels Mazda has added for 2019: Grand Touring Reserve or Signature. Of course, with higher trim levels and more powerful engines come higher prices. The Signature trim comes in at a whopping $37,885 including destination charges. For 2018, the highest trim level available was the Grand Touring, and that car costs $30,640. Mazda adds a bunch of new features for the expensive Signature trim, though. You'll get brown leather seats, real wood trim, a uniquely stitched leather steering wheel, 360-degree view camera, a frameless auto-dimming mirror, LED lighting throughout the interior and dark silver 19-inch wheels. These options are in addition to the new and still luxurious Grand Touring Reserve trim level. This trim has heated and cooled seats, a heated steering wheel and power folding mirrors as its highlights. For comparison, the Grand Touring Reserve with the turbocharged engine costs $35,865. Making the CX-5 more luxurious wasn't the only aim for 2019 — Mazda also gave it a new version of its G-Vectoring Control handling system. The updated G-Vectoring (now called G-Vectoring Control Plus) helps when the driver is unwinding the wheel by "adding a hit of braking to the outside front wheel," according to Mazda. This, in addition to some suspension refinements, are supposed to make for a smoother and better ride. Specifically, Mazda says it re-tuned the suspension to reduce friction and adjusted the steering geometry to achieve more natural feeling handling. Sweating over these small handling and feel things is why we typically end up liking the driving experience of Mazda vehicles. Mazda increased prices on the CX-5 across the board, too. The Sport trim is $1,600 more than before, with other trims following suit at similar increases. We'll see how the changes affect the sporty and now more expensive crossover when we get our hands on a 2019 model. For now, you can build them on Mazda's website, and Mazda says they'll be available sometime this fall.