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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 says 83 percent of new cars bear Skyactiv moniker

Mazda's US sales are down a little bit but the company's fuel economy is almost assuredly up. That's because its fuel-saving Skyactiv drivetrain technology is essentially taking over US vehicles sales. To the tune of about five out of every six vehicles sold, at least. While the Japanese automaker's US sales in February fell 2.4 percent from a year earlier, Skyactiv accounted for 83 percent of its sales last month. Most notably, Mazda6 sales jumped 46 percent from a year earlier, while Mazda CX-5 sales were up 72 percent. The company also celebrated the opening of its factory in Salamanca, Mexico, where it will make models such as the Mazda2 and Mazda3. The company is not resting on its fuel-economy laurels either, apparently. In January, it was reported the company is hard at work on its next-generation Skyactiv technology, which will boost fuel efficiency by as much as 30 percent by using diesel-like high compression. As it is, Mazda had the highest fleetwide fuel economy of any major automaker in the US for the 2013 model year with a 27.5 mile per gallon average, according to the Environmental Protection Agency (EPA). Honda came in second with 27 mpg. Check out Mazda's press release below. MAZDA SKYACTIV® TECHNOLOGY SETS RECORDS IN FEBRUARY - Mazda Celebrates Grand Opening of All-New Production Facility in Salamanca, Mexico - IRVINE, Calif., March 3, 2014 /PRNewswire/ -- Mazda North American Operations (MNAO) today reported February U.S. sales of 24,431 vehicles, representing a decrease of 2.4 percent versus last year. Year-to-date sales through February are down 6.7 percent versus last year, with 43,155 vehicles sold. Key February sales notes: Mazda's SKYACTIV® TECHNOLOGY accounted for 83.2 percent of all vehicle sales during the month of February. This is the largest percentage of Mazdas equipped with SKYACTIV TECHNOLOGY sold in one month, and second-best month of total volume ever with 20,245 vehicles sold. Mazda6 experienced its second-best February since 2008 with 3,945 vehicles sold, representing an increase of 46.0 percent, year-over-year (YOY). February 2014 was CX-5's best month ever with 9,353 vehicles sold, good for an increase of 71.6 percent, YOY. February was one of the most historic months for Mazda as it celebrated the grand opening of its all-new engine and vehicle assembly plant in Salamanca, Mexico.

Mazda's product roadmap after Skyactiv-X: diesel, rotary, hybrids, even EVs

When we first heard that Mazda had cleared the major hurdles on gasoline compression ignition, and were just tidying up the details with clear production intent, the first kneejerk thought was: That's it for Mazda's consumer diesel. In particular, the Skyactiv-D that was intended for sale in the U.S., only to be delayed for years by various regulatory roadblocks and other issues that Mazda is frustratingly (but understandably) vague on. At least, it'd die out at some point down the road once Skyactiv-X was widely available. It turns out that's not the case at all. Mazda will adopt an approach that becomes more and more electrified and diverse the closer you get to 2035. But internal combustion will play a deep and central role up to that point, and probably beyond. Before we get to what those different powertrains, diesel and electrified, will look like down the road, let's stop and think about Mazda's philosophy. It couldn't be more different from the approach of most manufacturers that are currently producing BEVs and hybrids, which are heavily incentivized by both the automakers and the government, both state and local, depending on the locality. Even with all that cash on top of the hood, the market penetration of electrified vehicles is low. Mazda's too small to lose money paying people to drive EVs and hybrids. Its risky solution (which is plucky, but has had mixed results) is to simply improve the internal combustion engine. It's achieved the best fleet average fuel economy in the U.S. already, using a range of direct-injection gas engines that are mostly naturally aspirated. A few tiny nods to electrification have been introduced, like i-eLoop regenerative braking and the Demio EV (a Japanese-market, last-generation Mazda2 with a 20kWh battery that was tested with a tiny rotary engine range extender). But the focus is on combustion, not electricity. And that focus isn't going away anytime soon. Mazda believes that pure gasoline, gasoline hybrid, and gasoline PHEV vehicles will remain the vast majority of vehicle sold through 2035. At that point, Mazda forecasts, BEV and fuel cell vehicles should make up about 15 percent of the total of Mazda's lineup. The remaining 85 percent will utilize some form of internal combustion engine. Now, that includes hybrids and even a small number of CNG/LPG cars. And these are global numbers, as well. There may be even fewer fuel cell and CNG/LPG vehicles sold here than abroad.