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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

Isuzu truck concepts include honeycombed ‘toaster on wheels’

Isuzu took to its hometown auto show to highlight its work in developing next-generation transport trucks, showing eight vehicles and four powertrain systems at the 45th Tokyo Motor Show. The most notable of the bunch are a pair of concepts: the FD-SI, a light-duty delivery truck designed around principles found in the insect kingdom, and the Elf EV, an all-electric version of its light-duty workhorse featuring a large-capacity battery with rapid-charging capability. From a design perspective, the FD-SI will get all the attention — much of it probably of the bemused sort. In truth, it looks like a futuristic toaster on wheels, a rolling box structure fitted with honeycomb patterns on the side panels and a glass cab windshield that seems borrowed from a heavy-duty construction crane. It turns out the honeycomb motif is no mere design whim; Isuzu says its designers focused on the "group intelligence" of insects and tried to apply that principle to the delivery vehicle. So the honeycomb exterior is replicated in the cargo space as hexagonal tube-shaped boxes, which the automaker says is a good compromise between strength and storage space. Inside the cab, the driver controls and seat have all been centralized, with the steering wheel retractable, to encourage smoother operability and more comfortable living space for the driver. "We want to support the drivers, the front-line people of "Transport," with unconventional ideas," Isuzu says. The Elf EV, on the other hand, is a zero-emissions, low-vibration delivery truck powered by a lithium-ion battery that'll take the vehicle at least 100 km, or 62 miles, on a single normal or fast-charge. It sports a 4x2, rear-wheel drive transmission with independent suspension in the front and leaf suspension in the rear. Here's a quick list of Isuzu's other Tokyo offerings: A 6x6 all-wheel-drive truck, featuring single wheels on all axles, built for rough terrain such as areas hit by major natural disasters. 80th anniversary editions of the Giga heavy-duty truck, geared with a remote monitoring system to transmit vehicle data for remote analysis to ensure safe driving; the Forward medium-duty truck, which boasts 10 percent higher fuel economy than its 2015 version; and the internal-combustion version of the Elf light-duty truck, which is sold in the U.S. as the N-Series.

GM, Isuzu shacking up on global midsize pickup development

General Motors and Isuzu might not be financial partners anymore, but it would seem that all those years working together still leaves a strong bond between them to work on new vehicles. Their latest collaboration is co-developing a next-generation midsize pickup to launch at a still-unannounced point in the future. Potential buyers of the upcoming Chevrolet Colorado and GMC Canyon have no reason to fear their purchase becoming obsolete, though, because there are no plans to sell these jointly created models in North America. As part of the deal, GM and Isuzu have already agreed to share components across the trucks and purchase the parts together to get a better deal, according to Reuters. However, the actual manufacturing was agreed to be kept separate. The first inklings of this deal cropped up a year ago when the two automakers signed a memorandum of understanding to co-develop a new pickup. The future GM and Isuzu models are joining the mini-boom of midsize trucks that is about to hit around the world. Nissan already announced its latest Navara, and Toyota was spotted testing replacements for both the Hilux and Tacoma. Plus, Honda has hinted at a new Ridgeline sometime fairly soon in the US. News Source: ReutersImage Credit: Mark Renders / Getty Images Plants/Manufacturing GM Isuzu Truck