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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 CX-5, Mazda6 and Mazda3 could stall due to software glitch

Mazda is recalling 262,220 vehicles due to a software error that could cause the engine to unexpectedly stall out. The recall affects 2018-2019 CX-5 crossovers, 2018-2019 Mazda6 sedans and 2019 Mazda3 models.  According to NHTSA recall No. 19V497000, which was filed June 27, a programming issue in the powertrain control module (PCM) on select Mazda vehicles could cause the engine to shut down. More specifically, "the software controlling the hydraulic valve clearance adjuster may operate improperly when transitioning from cylinder deactivation to full cylinder activation modes." This could potentially cause the intake valve rocker arm to come out of position and hit something else in the engine. If this occurs, the engine could misfire, the engine could lose power, and the Malfunction Indicator Light would be triggered. The recall affects 143,004 2018 CX-5s, 81,236 2019 CX-5s, 18,295 2018 Mazda6s, 2,551 2019 Mazda6s, and 17,134 Mazda3s. Some cars from those model years received the improved software at the factory and won't be affected by the recall. Although the first report of a related issue was chronicled in January 31, 2018, no injuries tied to the problems have been reported. Mazda is expected to start its recall on or before August 26, 2019, and will reprogram the PCM with improved hydraulic valve adjustment control programming for free. Contact Mazda at 1-800-222-5500, reference No. 3719F, for more information.

Miata buyers prefer a manual gearbox, says Mazda

Earlier, we wrote about Toyota's underwhelming 2018 manual transmission sales figures. To recap – as Toyota's representatives told CarBuzz – the automatic Corolla outsold its manual equivalent to a ratio of 100 to 1, and just one in three Toyota 86 buyers picked a manual version of the rear-drive coupe. What about the other famous rear-wheel-drive offering from Japan, Mazda's MX-5 Miata? A case can be made that an 86 buyer cross-shops the Miata, and vice-versa, but what kind of split do Mazda's sales figures reflect in comparison? We reached out to Mazda for some sales data, and PR program manager Tim Olson told us 76 percent of Miata soft-top buyers go for the classic stick-shift option, leaving just 24 percent of buyers preferring the automatic. Both transmission options for the Miata are six-speed. The figures are based on year-to-date sales data for the 181-hp 2019 Miata, from July 2018 through April 2019. Interestingly, the more coupe or targa-like, retractable hardtop RF variant takes a step towards the 86 when it comes to transmission choices. While RF buyers still preferred the manual, the split was far closer to half and half: 52% went for the manual, and 48% chose the automatic. Perhaps this reflects the RF's more grand tourer-like image, and it might also be indicative of the RF's higher pricing. If you're going to spend nearly $34,000 for a Miata, another $600 for an autobox doesn't necessarily mean that much – choosing the auto on the base, Sport trim level soft top roadster is a $1,350 bump instead. While the $26,650 base Sport isn't exactly spartan, on a roadster it's fine to have less cushiness. With the higher-specced Club trim level, the auto's price tag shrinks to the aforementioned $600, as it is on the RF Club. There's no base Sport for the RF, as the cheapest RF is the $33,865 Club. But still, the manual shifter's snick-snack feel is one of the Miata's classic traits that has been with it since its inception 30 years ago. Sources say fewer than 5% of the original first generation Miatas were made with an automatic gearbox, but it's obvious trends and tastes are changing – although to be fair, automatics are getting much better as well.