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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

Porsche revives Pink Pig and Rothman's liveries for Le Mans

Long-time fans of Porsche, particularly its motorsports history, are in for a treat at this year's 24 Hours of Le Mans. The company took two of its 911 RSR race cars and gave each of them a famous color scheme from the past. The designs are part of the company's 70th anniversary celebration. The first and most unusual paint scheme is a modern rendition of the "Pink Pig." The design was used on a Porsche 917/20 in 1971. Just like the original, it's finished in a pale shade of pink with dotted lines marking out sections of the car. Each of these sections has a label for a different cut of meat from a pig. The other livery isn't as strange, but it's no less recognizable. It features a blue, red and gold color scheme of tobacco company Rothmans. Rothmans was a sponsor of many racing Porsches over the years, and the colors appeared on everything from Le Mans racers to the Paris-Dakar 959. This version on the 911 RSR notably lacks any tobacco branding or advertising. The two 911s with the retro colors will be competing alongside 8 additional 911s with more modern liveries. They will compete in the GTE classes at the 24 Hours of Le Mans. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Junkyard Gem: 1988 Chevrolet Spectrum CL Sedan

After a not-so-successful run selling Opels in the United States during the 1960s and 1970s, The General looked to his partners in the East for the next round of low-priced GM-badged imports. There was the 1985-1988 Chevrolet (Suzuki) Sprint (which later became the Chevy/Geo Metro), 1988-1993 Pontiac (Daewoo) LeMans, and a bunch of Chevrolet and Geo machinery based on the late-1980s Isuzu Gemini. Here's one of the first of those Isuzus: a 1988 Chevrolet Spectrum CL sedan, found in a Northern California self-service wrecking yard. The first model year for the Spectrum (sibling to the U.S.-market Isuzu I-Mark) was 1984, and these cars wore Chevrolet badges through the first part of 1988. At that point, GM decided that its Asian-built imports would belong to the Geo brand starting in the 1989 model year, so 1988 models can be either Geos or Chevrolets, depending on when they were imported. Most Spectrums (Spectra?) were hatchbacks, so a 1988 Chevrolet Spectrum sedan is now one of the rarest 1980s cars sold in the United States. This is yet more evidence that rare does not equal valuable. The interior looks non-thrashed, and the odometer shows a startlingly low reading for a 30-year-old Japanese car. The buildup of rodent bedding in the engine compartment suggests long-term abandonment prior to the car's final ride to this place, possibly dating back 20 years. In keeping with 1980s design trends, the HVAC controls show vivid pink and blue colors, and the option to direct air at your feathered hair or your high-heeled boots. Perhaps the members of Poison owned this car. Most Spectrum buyers would have been too cheap to get air conditioning or an automatic transmission, but this car has both. You just never know what you'll find in the junkyard! This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. As slick as city rain. Featured Gallery Junked 1988 Chevrolet Spectrum sedan View 18 Photos Auto News Isuzu Automotive History