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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

2016 Mazda CX-5 [w/video]

It's difficult for me to get excited about crossovers. I try hard not to be the stereotypical car guy: ignoring the fact that the rest of the world loves these tall hatchbacks, while yelling, "station wagons make more sense!" until I've voided my lungs of air. Deep down I am that guy, but I work around it. Historically the Mazda CX-5 is one crossover that has been quasi-immune to my knee-jerking. It doesn't weigh two tons, offers a manual transmission (in poverty spec, but still...), and looks faster than its competitors. Most importantly, the CX-5 can round a corner without wobbling like a Slinky at the top of the stairs. No item on that list of plaudits would likely crack the top ten "desirables" for average small CUV shoppers. So, for the 2016 update, Mazda instead upgraded the in-cabin experience along with the requisite nips and tucks to the exterior. I borrowed a 2016 model CX-5 to see whether or not those concessions to comfort affected the car-nerd stuff. And to see if the Mazda could still be my go-to CUV recommendation. Driving Notes The engine options are unchanged for 2016. You can still have the fine, 2.5-liter four-cylinder engine, with its 184 horsepower and 185 pound-feet of torque, or its wimpier 2.0-liter lil' brother. My fully spec'd Grand Touring came with the bigger engine, which feels adequately powerful for the class, but not quick. In an era where turbocharged engines are everywhere, revving the Skyactiv 2.5-liter up to its torque peak at 3,250 rpm takes some commitment. I'm annoyed that there's no manual offered with the 2.5L (a combo I can have in both the Mazda3 and Mazda6), but I don't hate the automatic transmission. The six-speed unit is unobtrusive 99 percent of the time; something I regretfully can't tell you about certain nine-speed autos. There are no paddles to play with, but you can tap the shift lever up and down if you're struck by a need for total control. With a new center console and dash, and the addition of the Mazda Connect infotainment system, the '16 CX-5 feels like a new vehicle from behind the wheel. An attractive, pliant, leatherish material swaths the neat console and surrounding real estate. And the perforated leather seats feel damn near upscale. I think that Mazda Connect's version of the central control knob (with handy adjacent volume knob) is almost luddite-proof in its simplicity. There's no latency between twisting and reaction on the screen.

Automakers are offering more fuel-efficient cars than ever

Even with gas prices near their lowest point in more than a decade, Americans are still concerned about the fuel economy of their cars. More than 4 in 5 consumers say gas mileage will be an important consideration the next time they go shopping for a vehicle, according to the results of a new survey conducted by the Consumer Federation of America, which were released Monday. That's no surprise, says Jack Gillis, director of public affairs for the nonprofit organization. "Consumers have had a long history with volatile gas prices," he said. Though motorists have saved approximately $12 billion this year at the pump compared to 2015, according to AAA, car shoppers expect gas prices to rise again in the future. The average respondent to CFA's survey predicted a price of $3.50 per gallon within the next five years, a figure in line with projections made by the US Energy Information Administration. When those consumers visit dealerships, they'll have plenty of options. More models than ever are achieving 30 miles per gallon or more, according to CFA's annual analysis released in conjunction with the survey, and 15 of 16 major car companies improved their fuel efficiency on their 2016 model-year offerings. Only Ford backslid year over year, per the report. Researchers say American consumers are now enjoying the widest range of fuel-efficient options ever offered, in every vehicle class. Of 1,094 models on sale in 2016, 13.4 percent achieved more than 30 MPGs, an improvement from 11.7 percent in 2015. At the same time, the percentage of gas guzzlers offered for sale has declined. The percentage of vehicles on the market that get 16 miles per gallon or less has fallen from 6.1 percent to 4 percent, says CFA. "Even if you're in the market for a large pickup or SUV, you'd have to go out of your way to find a true gas guzzler," Gillis said. ""Consumers have had a long history with volatile gas prices." – Jack Gillis These results, the CFA suggests, indicate federal standards that prod automakers to invest in fuel-efficient technology are having the desired effect. Manufacturers are keeping pace with the requirements of the Corporate Average Fuel Economy standards, which mandate carmakers achieve a standard of 52.5 miles per gallon in testing, equivalent to about 40 miles per gallon in on-road performance, by 2025. CFA's report singled out Mazda as setting an exemplary standard.