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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

Subaru recalls 100K turbocharged models for fire risk

The Basics: Subaru is recalling a total of 100,127 turbocharged cars over a fire risk. The affected vehicles include the 2007 to 2009 Subaru Legacy and Outback, 2008 to 2014 Impreza, and 2009 to 2013 Forester. All of the cars are equipped with the 2.5-liter turbocharged four-cylinder engine. The Problem: The turbocharged vehicles have a faulty relay that could cause the secondary air injection pump to fail. If the relay fails, the pump would work continuously, possibly overheat, and melt, increasing the risk of a fire. Injuries/Deaths: None have been reported. The Fix: Subaru dealers will replace the defective secondary air injection pump relay at no charge. If you own one: Subaru will notify affected owners to schedule a fix. Owners can also call Subaru's customer service line at 1-800-782-2783 to confirm if their vehicle is affected. Related Video: News Source: National Highway Traffic Safety Administration Government/Legal Recalls Subaru Crossover Hatchback SUV Sedan

Subaru limited-edition WRX STI Type RA and BRZ tS pricing revealed

Back in June, Subaru announced that it was going to produce a limited edition of 500 higher-performance WRX STIs and BRZs. Now we know what they'll cost. Let's take the WRX STI Type RA first. That's going to set you back $49,855, including destination and delivery. (As a frame of reference, a plain old STI lists for $36,995.) The BRZ tS, on the other hand, will cost $34,355. (A base BRZ sells for $26,315.) So the premiums for the limited-edition cars are $12,860 and $8,040, respectively. What you get for the WRX STI Type RA's higher price, aside from more letters, is a roster of handling and enhancements and weight reduction measures (how much less, Subaru didn't say): Carbon fiber wing. Carbon fiber roof panel. Spare tire delete. Lightweight 19-inch alloy wheels. Revised third-gear ratio and shorter throw on the six-speed manual. Upgraded suspension with special Bilstein dampers. Modified vehicle dynamics control (VDC). All WRX STIs for 2018 get upgraded brakes, and the Type RA shares in that, getting stronger Brembo monoblock six-piston calipers in front. Two-piston calipers are in the rear, and it gets larger, cross-drilled rotors at all four corners. Brake pads have more surface area. The one difference in the Type RA: The calipers are painted an "exclusive" silver finish. All STIs also get a new all-electronically controlled limited-slip center differential AWD system. Horsepower gets a nudge to 310, from the regular STI's 305. Doesn't look like much on paper, but Subaru says the car will get a new cold-air intake, high-flow exhaust, retuned ECU and stronger pistons. Inside, it gets special Recaro seats, an Ultrasuede steering wheel, and each car will be individually numbered, with a plaque in the cabin. Finally, the Type RA gets "Cherry Blossom Red" accenting, RA badging, a front underspoiler and paint choices of blue, black and white. In case you're wondering about the naming/numbering, the "RA" in WRX STI Type RA stands for "record attempt." In July, a WRX STI Type RA NBR Special — a specially built 600-horsepower racecar that is a far cry from the car going on sale — finished a lap of the Nurburgring in a blazing 6:57.5. That's just half a second behind the Porsche 918 Spyder hypercar. The BRZ tS, meanwhile, gets: STI-tuned front and rear Sachs dampers and coil springs, and other steps to stiffen the suspension. Lightweight 18-inch wheels with Michelin Pilot Sports. Four-piston Brembos up front, twofers in the back.