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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

Honda, Nissan and Mazda recalling 3 million vehicles for airbag inflators

Three million more vehicles can be added to the worldwide tally to be repaired for the faulty airbag inflators supplied by Takata. Honda, Nissan, and Mazda have all issued recalls to replace the bad part, including about 1.2 million of them in North America. NHTSA has been investigating all three companies, plus Chrysler and Toyota, for potentially affected vehicles.
Honda is recalling roughly 1.02 million Civic, CR-V, Odyssey and Element models In North America, built between April 2000 and October 2002. Mazda needs to repair 14,794 units of the RX-8 and Mazda6, and Nissan has 228,000 vehicles in North America to be fixed.
Chrysler is also starting what it calls a "regional field action" to replace the inflators in the 2006 Dodge Charger, according to a company spokesperson. The company says that it has not yet found the problem in any of its vehicles, but it's being done "out of an abundance of caution." The final number of Chargers affected will be announced later this week.

Mazda's next-gen SkyActiv engines will drop spark plugs in favor of high compression

Homogeneous charge compression ignition, or HCCI, is the black art of internal combustion engines that aims to produce diesel-like fuel efficiency for the cost of gasoline. Although some of its competitors have developed and subsequently given up on the tech, Mazda confirmed that the next-generation of SkyActiv engines will employ HCCI technology, improving fuel economy by 30 percent and at the same time reducing exhaust emissions. According to Nikkei, a new SkyActiv family of engines is set to debut under the hood of the next-gen Mazda3 sometime in 2018 before making its way into other vehicles. In simple terms, an engine that uses HCCI burns the air/fuel mix using pressure instead of with spark plugs, just like a diesel. At 14:1, Mazda's gasoline engines already have some of the highest compression ratios out there, but a move to HCCI means cranking up the compression to 18:1. While the tech sounds relatively straightforward, using HCCI means dealing with a number of side issues. It's one of those "on paper" ideas that compounds problems when put into practice. Heat, revs, and fuel must all be carefully managed as gasoline doesn't burn the same way as diesel. Mazda is mum on details, but the automaker seems confident that the issues have been sorted. If the new engines do indeed make it to market with HCCI, Mazda will have out-engineered GM, Daimler, and Hyundai, all of which have tried and failed to develop HCCI engines in a cost-effective package. With the market moving towards electrification, it's interesting to see Mazda still focusing so heavily on traditional internal combustion gasoline engines. It's an indication of where they see the market heading for the next few years. Although the automaker has been hesitant to move forward with hybrid and electric powertrains, Nikkei also reports that Mazda will begin mass production of EVs in 2019. Related Video: