Auto blog

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

Nissan Xterra exits stage left [UPDATE]

Update: The original story said the 2016 Rogue switches to a camera-based blind spot warning system, rather than radar-based. The opposite is true, and the text is changed to reflect this. Nissan is announcing most its 2016 model-year changes, and you can say farewell to the Xterra after 15 years in the lineup. As previously rumored, the SUV is shuffling off without a replacement to join the similar recent fates of the Nissan Pathfinder hybrid and Volkswagen Touareg hybrid. The decision is easy to understand. The Japanese automaker's volume is up 4.6 percent through July in the US to 792,642 vehicles, but the Xterra moved just 8,114 examples in that time, down 25.1 percent from the same period in 2014. While the Xterra is leaving, Nissan has a lot in store for the 2016 model year. New additions to the lineup include the latest generations of the Maxima and Titan. Plus, the Altima and Sentra are being refreshed with reports suggesting both of them take design inspiration from the latest Murano. Nissan is also keeping the Rogue fresh, even though it was just redesigned for 2014. The SL Premium package gets forward emergency braking. Siri Eyes Free is added to the SV Premium package and SL, and body-colored mirrors with integrated turn signals come on the S appearance package. Finally, the blind spot warning system is now radar-based, rather than using a camera. You can read the full list of changes for each model in the press release below, but some of the highlights include: 370Z Coupe and 370Z Nismo are available with a Bose stereo with active noise cancellation and active sound enhancement. The Frontier gets a moonroof on the Crew Cab SV GT-R wears 20-spoke Rays wheels rather than the previous 10-spoke design Juke has standard Siri Eyes Free NV Cargo has added side-impact airbags NV Passenger gets a standard 5.8-inch infotainments system on the SL trim Pathfinder has an optional cold package on the SV with heated front seats, steering wheel, and side mirrors Versa Note SV now gets convenience package standard, which includes a 5.0-inch infotainment system, RearView Monitor, and Divide-N-Hide rear floor. The 2016 Nissan lineup: Charting the changes Nissan is a brand on the move. And on a roll. The past two years have seen the back-to-back introductions of the segment-busting 2014 Rogue and 2015 Murano, which helped drive Nissan to record 2014 calendar year sales of 1,269,565 (+12.2%) in the United States.

US-built Infiniti Q50 engines to go into Euro-only cars

Back in March, Infiniti announced that it would be adding a 2.0-liter, turbocharged four-cylinder to its Q50 line for European and Chinese buyers. Now, we know where that engine will be built.
Nissan's Decherd, TN facility will receive the $319-million investment, which will see a separate, dedicated line for the Infiniti engines. According to Automotive News, this is more than a line running alongside the Nissan operations - the Infiniti facility will sport its own unique architecture and interior lighting, in a bid to distinguish the premium line from its mass-market parent company.
The logistics of all this do seem, on the surface, quite screwy. Building a new engine on one continent for a car built on another that will eventually go on sale on a third doesn't seem too bright, although there is a catch here. The new engine will also find its way into the Mercedes-Benz C-Class, which will kick off production in Vance, AL later this year.