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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

Recharge Wrap-up: 61 miles on Autopilot; Mazda CX-9's 32% mpg improvement

A technology analyst at The Motley Fool used Tesla's Autopilot uninterrupted for 61 miles. In order to see how far the Tesla Model S could drive itself without driver intervention, Daniel Sparks set off on the highway from Monument, Colorado, through Colorado Springs and onward toward Pueblo. Only when a truck encroached on his lane did the driver take command of the wheel, rather than waiting to see what the car would do. "With [the] Model S nearly out of Pueblo and onto a long, boring stretch of highway by the time I had to grab the wheel, chances are I could have made it all the way to Colorado City if it wasn't for this interruption," says Sparks. Read the full account at The Motley Fool. The 2016 Mazda CX-9 offers 32 percent better fuel economy than the outgoing model. The front-wheel-drive CX-9, equipped with Mazda's Skyactiv-G 2.5T engine, gets an EPA-estimated 22 mpg city/28 mpg highway/25 mpg combined. The 2016 CX-9 has shed significant weight compared to its predecessor. Its turbocharged engine uses a Dynamic Pressure Turbo system, which improves performance at lower rpm by controlling the degree of exhaust pulsation according to engine speed. The new CX-9 goes on sale this spring. Read more at Green Car Congress. A group of eight US cities have formed the Energy Secure Cities Coalition (ESCC), pledging to switch their fleets over to alternative fuels. Atlanta, Charlotte, Indianapolis, Orlando, Rochester, Sacramento, San Diego and West Palm Beach will retire their petroleum-powered vehicles in favor of EVs and cars using cleaner fuels like natural gas. The cities expect the change to help improve air quality and save taxpayer money on fuel and maintenance costs. The ESCC hopes to grow to include 25 major cities, removing some 50,000 petroleum-fueled vehicles from service and saving 500,000 barrels of oil per year. Read more in the press release below. Eight Major Cities Unite to form Energy Secure Cities Coalition—Fleets Embracing Alternative Fuels to Improve America's National and Economic Security Coalition's goal is to retire 50,000 petroleum-powered vehicles, saving tens of millions in taxpayer dollars and improving U.S. national and economic security. Washington, D.C.

Junkyard Gem: 1990 Mazda 929 S

In the late 1980s, Toyota, Nissan, and Honda were cleaning up in the American market with the Cressida, Maxima, and Legend, respectively. Mazda wanted some of those dollars, so the HC-series Mazda Luce was modified for the US market and sold here as the 929. It had rear-wheel drive, a powerful V6 engine, and lots of luxury features, but not many were sold. Here's a rare '90 that I spotted in a San Francisco Bay Area self-service yard. In 1990, the sporty 929S version got 190 horsepower from its DOHC 3.0-liter V6. Unfortunately for Mazda, American buyers associated the marque with sensible econoboxes and screaming rotary engines, not luxury machinery, at the time. For the 1990 model year, American-market cars were required to have either a driver's-side airbag or automatic seat belts. The 929 had the automatic belts, the less said about the better. The Luce-based 929 became the Sentia-based 929 for the 1992 model year. Meanwhile, the new luxury brands from Honda, Nissan, and Toyota were kicking the crap out of 929 sales; Mazda had planned to launch the Amati brand in the United States, but didn't have the resources to follow through. The last 929s were sold in the United States for the 1995 model year. Related Video: Featured Gallery Junked 1990 Mazda 929 S View 16 Photos Auto News Mazda