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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-9 Luggage Test | How much fits behind the third row?

We recently tested the luggage-carrying capability of one of the most spacious three-row crossovers, the Hyundai Palisade, and now it's time for one of the smallest. The Mazda CX-9 may look terrific and drive even better, but that zest comes at the expense of cargo capacity, as we're about to see. The big culprit is that rakish liftgate, which not only robs the CX-9 of luggage space, but third-row headroom as well. It's pretty dungeon-like back there despite competitive legroom, and there aren't any air vents or USB ports, either. But this is about cargo capacity, so let's see how much luggage will fit inside. According to the specs, the CX-9 has 38.2 cubic-feet with the third-row lowered. That's far less than the Palisade's 45.8 and Honda Pilot's 46.8. It's actually even less than the five-passenger Honda Passport (50.5).  The test car came with a $100 cargo mat, which is velcroed to the seats and folds OK with it, but the carpet also takes up some extra space ... and the CX-9 needs as much as it can get.  To raise the seats, lean inside and pull up/back on those two handles. There is 14.4 cubic-feet of space behind the raised third row. On paper, that is indeed one of the smaller amounts in the segment, but in practice, it seems even smaller.  You can free up space by removing the rigid floor panel. If you need to carry multiple pieces of luggage, it's almost a necessity.  OK, so I have two midsize roller suitcases, both of which would need to be checked. Then there's two larger carry-on roll-aboards and one smaller one. As a bonus, there's my wife's quasi-fancy weekend bag. It was a struggle to fit three of them aboard, and Tetrised together two formations. The first uses all three carry-on bags with the cargo floor removed. And no, the fancy bag won't fit atop the blue one because it'll run into the liftgate window. A smaller tote would definitely fit, however.  This is how I could fit one of the bigger check-in bags. The liftgate just barely closed. Again, you could fit a small tote atop the blue bag, plus some other items in the lower outboard regions.  OK, so how could you fit everything aboard? Lowering half of the 50/50-split third row is a must, obviously. Both big check-in bags then stack atop each other, and then stack the other four atop each other with the cargo floor in place.

Japanese students turning Mazda CX-5 into Dakar Rally-ready off-roader

Students at Japan's Nihon Automobile College (NATS) are transforming a first-generation Mazda CX-5 into a full-blown off-roader that looks ready to compete in the Dakar Rally. Named CX-Runner, the one-of-a-kind model will make its debut at the Tokyo Auto Salon opening its doors in January 2020. The Tokyo Auto Salon is the Japanese equivalent of the annual SEMA show, so anything goes under the bright lights. NATS students began the CX-Runner project with a used 2012 CX-5 and seemingly set out to leave as few original parts as possible. While the project isn't finished yet, a sketch released by the school suggests the crossover will receive wheel arch extensions, an external roll cage, a beefier suspension, and a shorter front bumper that increases the approach angle.  Photos published on the school's official Facebook page show the project is moving along nicely. The body extensions are made with a composite material that looks like Kevlar, and fitting the rear wheel arches required sealing the back doors, which is fine; the CX-Runner will be a two-seater. We don't know if students are planning to make changes to the CX-5's powertrain yet, but a thick skid plate will protect whatever is under the hood from expensive impacts with obstacles encountered off-road. nats-mazda-cx-runner-project-1 View 3 Photos The Tokyo Auto Salon will open its doors on January 10, so the students have time to finish the custom-made body kit, install the suspension, paint the CX-Runner, and fit the roll cage. They're not just doing this for fun, though. NATS began offering a customizing class in 1998, and building a tuner car is one of the requirements aspiring builders need to fulfill in order to graduate. With that in mind, it's no surprise that NATS will again have a big presence during the 2020 edition of the Tokyo Auto Salon. In addition to the CX-5 off-roader, its students are building six custom cars including a Nissan 370Z roadster wearing front and rear fascias sourced from a GT-R, a Toyota 2000GT-inspired convertible based on the Suzuki Cappuccino kei car from the 1990s, and a four-door, five-seater Toyota 86 built on Camry bones but powered by the coupe's flat-four engine. Relate Video: