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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

Will Mazda transform the CX-5 into a full-fledged luxury car?

Mazda's next-generation CX-5 will graduate from premium to luxury to bolster the firm's upmarket push, according to a recent report. It will again take the form of a crossover, but it might spawn a fastback-like model. Japanese magazine Best Car learned from company insiders that the next CX-5 will be comparable to the BMW X5 and the Mercedes-Benz GLC. If that's accurate, the people-mover will receive substantial upgrades in the coming years, because the current model is not as big, not as luxurious, and not as quick as either of those SUVs. According to the same source, the CX-5's transformation will be made possible by two key elements. First, it will ride on a new rear-wheel-drive platform that it will share with the next Mazda6, though all-wheel-drive will also be offered. Using this architecture will allow stylists to increase the dash-to-axle ratio, which will in turn expand its footprint. Second, the space between the extra sheetmetal will be occupied by a new straight-six engine whose existence has already been confirmed by Mazda. It will get SkyActiv-X technology, and it will be available with a 48-volt mild hybrid system. Elsewhere in the world, Mazda will release a turbodiesel variant of the six-cylinder. Adopting rear-wheel drive and a straight-six engine will put the CX-5 in the same league as the Germans; on paper, at least. Mazda will undoubtedly ask its stylists to give the model a suitably stylish appearance, and Best Car added the range could include a new four-door fastback possibly called CX-50 and aimed at the X6. Mazda's next CX-5 is expected to make its debut in 2023, so it might not arrive on our shores until the 2024 model year. We'll see the next Mazda6 a little sooner, and it will give us a good idea of what's next.

Mazda recalling 18k Mazda6 and RX-8 models over airbag inflators

Faulty Takata airbag inflators keep taking their toll on automakers. Mazda is the latest to be affected in the US by announcing a recall covering 18,050 Mazda6 and RX-8 models to replace the front, passenger-side airbags. Specifically, the campaign covers 18,000 Mazda6 units from the 2003 and 2004 model years built between May 29, 2002, and March 4, 2004, and 50 RX-8 vehicles from the 2004 model year made between June 25, 2003, and June 30, 2003.
As with the rest of the vehicles with these faulty inflators, it's possible for the part to rupture when deploying the airbag and potentially spray shrapnel at the occupant. Mazda's defect notice goes into a bit more detail than most about the problem saying: "some propellant wafers have been produced with an inadequate compaction force, or may have been exposed to uncontrolled moisture conditions (those wafers could have absorbed moisture beyond the allowable limits)."
This isn't Mazda's first difficulty with Takata-supplied airbags this year. The company was among the seven automakers that recalled vehicles in hot-weather states over the inflators. It also had to recently fix 42,000 Mazda6 vehicles in China over the issue.