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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 files patent applications for inline-six technology, new transmission

We've known for some time that Mazda is one of the OEMs getting back on the inline-six engine bandwagon, and a report from Japan gives us a glimpse of some of the automaker's plans. Mazda has filed patent applications for both new exhaust components (depicted with an inline-six) and a new eight-speed automatic transmission.  The news comes from a blog called T's Media (fire up Google Translate), which located the new hardware in two separate fillings, one for exhaust system components and one for the new transmission.  Mazda's lineup has been exclusively powered by four-cylinder engines since the demise of the last-generation CX-9, which utilized a 3.7-liter V6 sourced from Ford. Since, Mazda has relied on turbocharging to get more power out of its SkyActiv four-pots, but changes may be coming. Prior reports have indicated that Mazda wants a new, larger engine architecture to power vehicles built on a new, larger platform. This new chassis is expected to accommodate longitudinal, rear-wheel drive powertrains, which could spawn larger crossovers and SUVs. It could also potentially underpin a new rear-wheel drive coupe, if Mazda decides to go that route.  While the inline engine itself is not news, what we're seeing here might actually be hints as to Mazda's approach to the next generation of its SkyActiv engine architecture. Mazda's exhaust patent seems to describe a scalable — perhaps even modular — setup intended to be used with inline and potentially even V-engines.  "Provided is an engine exhaust structure capable of securing exhaust efficiency while reducing the size of the engine by changing the structure of an exhaust port," a translation of the patent application's introduction says. "[T]here has been proposed a technique for collecting exhaust gas discharged from each cylinder inside a cylinder head without using a separate exhaust manifold with the aim of downsizing the engine." In other words, Mazda is looking for ways to make its future engines more compact, and the strategy detailed here is the use of an integrated exhaust manifold, similar to what other automakers (such as Honda and Ford) have utilized on their smaller-displacement turbocharged engines. The sketch above of an inline-six engine with just two exhaust ports illustrates this concept.  The eight-speed transmission, while noteworthy in its own right as Mazda currently relies on aging six-speeds, doesn't seem to offer us anything particularly game-changing.  Related Video:

Mazda planning more powerful MX-5?

The new Mazda MX-5 will be available with a 1.5-liter four with 129 horsepower or 2.0-liter with 155. And while either engine may seem a tad on the small side for a sports car, they keep perfectly in line with what the Miata is all about. That doesn't mean, however, that more powerful options aren't under consideration. Speaking with Motoring.com.au at the launch of the new MX-5, Mazda's global PR chief Kudo Hidetoshi revealed that two options are under consideration. One would be a larger engine, and the other a turbocharged version of the existing 2.0. The former option would deliver the extra punch while keeping things naturally aspirated and free from turbo lag, but could throw off the weight balance Mazda has worked so hard to preserve. The more likely option, then, would be the turbocharged route that would allow the Zoom-Zoom brand to keep the roadster light and nimble, while still delivering an extra boost. Neither would be without its challenges, but if overcome, the resulting high-performance model could be sold as a Mazdaspeed model in some markets and as an MPS version in others. And, even if such a performance roadster were to get the go-ahead for production in some markets, there's no guarantee that it will be sold in the United States. Here's hoping. Related Video: