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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

Junkyard Gem: 1984 Isuzu P'up

General Motors, wishing to sell a small pickup to compete with the likes of the Toyota Hilux and Nissan 521, began importing the Isuzu Faster for the 1972 model year, equipping it with Chevrolet LUV badges. Ford brought over the Mazda Proceed as the Courier the same year, while Chrysler turned to Mitsubishi to provide the Plymouth Arrow Truck and Dodge Ram 50 a bit later on. Once GM introduced the all-Detroit S-10 for the 1982 model year, however, the LUV's reign ended. Fortunately for fans of the Light Utility Vehicle, Isuzu began selling these trucks under its own badging here in 1981. This truck was called the P'up, and sales continued through 1987. Here's one of those P'ups, found in a Denver boneyard last month. This truck has the long-bed option. The purple paint and black stripes appear to be non-factory items, as the engine-compartment paint is silver. Under the hood, we see the 1.9-liter G200Z engine, as used in the Impulse and early Trooper. It had 86 horsepower on tap, which made this truck quite a bit zippier than the version with the 58-horse diesel (several decades back, I had a job that involved driving a diesel P'up and I can state from experience that the oil-burning P'up was an agonizingly slow machine). Still, this truck must have been on the poky side, what with its (optional) three-speed automatic transmission. What's this— air conditioning in a compact pickup? That was still something of a blasphemous idea in the middle 1980s. Someone installed a functional cold-air induction system involving an aftermarket air cleaner protruding from the hood, above the carburetor. Let's hope there was a filter element in here, because it doesn't do a carb any good to suck in bugs and dirt (not to mention filling with water while parked outdoors during rainstorms). This is by far the most common sticker found on vehicles in Denver-area wrecking yards. The Incredibles Empire appears to get mightier with each passing day, though I see plenty of stickers from other cannabis-related businesses in these yards. Fox Street Wellness is still around, though under a new name. What better vehicle for picking up a bag of Girl Scout Cookies weed ("best reserved for experienced cannabis consumers") than a purple P'up with hood-mounted air cleaner? Today, the Purple P'up's final parking spot is just a few miles to the north of this dispensary.

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