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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's EV resistance may mean CAFE trouble ahead

Is Skyactiv the limit for Mazda? The Japanese automaker has ridden its gas-powered engine technology platform to the upper end of fleetwide fuel economy among automakers in the US. But the company's lack of electrification, either hybrids of plug-in vehicles, combined with increasing sales of crossovers, may limit future fuel-efficiency gains, Automotive News reports. Mazda has no plans to add battery-electric variants across its product line, the publication says, citing comments from Mazda North America CEO Masahiro Moro. So far, the dependence on Skyactiv has worked well, as Mazda was the second automaker - after electric-vehicle maker Tesla Motors – to meet the US fuel-economy mandate of 34.1 miles per gallon for 2016. Additionally, Mazda plans to unveil the second-generation version of Skyactiv next year. Using a technology called "homogenous-charge compression ignition" (HCCI), Mazda's gas-powered engines will approximate the compression in diesel engines, boosting fuel economy accordingly. Because of that development, Mazda's Moro is "very confident" that the company will meet the US Corporate Average Fuel Economy (CAFE) mandate for 2021. With no plans for US plug-ins or hybrids (Mazda's only hybrid, a variant of the Mazda3, is sold in Japan), Moro is not so sure about meeting the 2025 CAFE mandate of 54.5 mpg (which equates to a "real world" fuel economy of about 40 mpg). Additionally, Mazda's "biggest regulatory headache" will be meeting California's mandate that 15 percent of the state's new-vehicle sales be zero-emissions within the next decade. In 2011, Mazda laid out its strategy of leaning on its Skyactiv technology instead of moving to drivetrain electrification as a way to boost fleetwide fuel economy, saying at the time that "you can't out-Toyota Toyota and you can't out-Honda Honda." The company also took a strong stance against even the idea of electrification in vehicles. According to the US Environmental Protection Agency (EPA), Mazda's model-year 2015 vehicles averaged 30.1 mpg, beating out Honda's 28.9 mpg, Subaru's 28.7 mpg, and Nissan's 28.3 mpg. Mazda's fleetwide fuel efficiency increased from 29.4 mpg for the 2014 model year, and from 28.1 for the 2013 model year, according to the EPA. Related Video: Featured Gallery Mazda3 SkyActiv-Hybrid View 21 Photos News Source: Automotive News-sub.req. Green Mazda Fuel Efficiency Green Automakers Electric Hybrid skyactiv mazda hybrid mazda electric car

2016 Mazda MX-5 Miata Club Edition sharpens, styles the new roadster

One could argue that any iteration of the last-generation Mazda MX-5 Miata was worth having. But were it our money on the line, we'd have likely driven home with the Club, a simple trim that, for a reasonable $28,665 (for the retractable hardtop model), added a number of performance and aesthetic features. The 2016 MX-5 Miata Club Edition should prove to be a successful followup. Like last year's model, it adds a limited-slip differential, a retuned suspension with Bilstein shocks and a tower brace under the hood. On the aesthetic side of the game, 17-inch gunmetal wheels are included, along with a new rear spoiler and a front splitter. For those that demand an even sharper Club Edition, though, Mazda will also offer even lighter wheels, courtesy of BBS, along with Brembo brakes and the aero kit from the MX-5 Global Cup racer. Check out our full original post on the MX-5 Miata Club Edition, as well as a complete gallery of live images from the 2015 New York International Auto Show. Related Video: 2016 MAZDA MX-5 MIATA CLUB MAKES WORLD DEBUT AT NEW YORK INTERNATIONAL AUTO SHOW - Performance-focused MX-5 Club has trim level-exclusive Bilstein suspension, limited-slip differential - NEW YORK (April 1, 2015) – Mazda North American Operations (MNAO) today introduced the 2016 Mazda MX-5 Miata Club at the New York International Auto Show, marking the world debut of the North American-focused Club model. Lighter, smaller, quicker and more nimble than its predecessor, MX-5 has adopted Mazda's full suite of SKYACTIV Technology and KODO-Soul of Motion design. In the process, MX-5 has shed approximately 150 pounds from its predecessor, with a curb weight of 2,332 lbs. when equipped with SKYACTIV-MT six-speed manual transmission (2,381 lbs. with the six-speed automatic transmission). The MX-5 Club heightens performance with trim-level exclusive: - 17-inch gunmetal alloy wheels wrapped in 205/45R17 tires - Limited-slip differential when equipped with SKYACTIV-MT - Bilstein shocks when equipped with SKYACTIV-MT - Shock tower brace when equipped with SKYACTIV-MT - Front air dam and rear lip spoilers Standard equipment on MX-5 Club models includes MAZDA CONNECTTM infotainment system with a seven-inch color touchscreen display and multi-function commander control, HD and SiriusXM Satellite Radio, two USB ports, piano black side mirrors and seatback bars and a nine-speaker Bose audio system with headrest speakers.