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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

Watch Subaru WRX STI's ripping record run at Nurburgring

As expected, Subaru had a bunch of cameras rolling when they gunned for a Nurburgring lap record attempt. The car they used was a specially honed (deep breath) WRX STI Type RA NBR Special, and it proved to be good for a 6:58.9 lap around the Nordschleife, in the hands of Richie Stanaway. Now, video material of the sedan car record run has been posted on Subaru's social media pages, and it includes a separate "Behind the Scenes" video. The record car was built by Prodrive, and it consists of a 2017 WRX STI with a full roll cage, fitted with a WRC specification two-liter turbo engine that produces more than 600 horsepower thanks to its 75mm intake and 25 psi of boost. The transmission is also a WRC item, and its hydraulic paddle-shift setup together with an automated clutch enables shift times of 20-25 milliseconds. The track time is quicker than a recent privateer attempt using a 2017 Dodge Viper ACR, which squeezed the time down to 7:01,3 until a tire failure caused it to crash. Of course, the Viper was classified as a production vehicle, unlike the Subaru. Here's the Behind the Scenes footage: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Rally Racing with Subaru Rally Team USA Driver David Higgins | AutoblogVR

So you like rally racing, huh? Well so do we. We like it so much, in fact, that we asked professional rally racer David Higgins to take us for a spin in his #75 Dirtfish Subaru Impreza STI. Lucky for us, he happily obliged! If you thought rally racing looked thrilling on TV, just wait until you've experienced it with a 360-degree field of view. While zipping around the track at the Port of Los Angeles, David lets us in on some of the specs of his car, which can hit 60 mph in an astonishing 1.9 seconds. Although the car has the ability to "easily hit 130 [or] 140," according to David, the real focus on its 0-100 mph acceleration, as that's where the action happens in rally racing. Sit back, relax, and enjoy this unique experience sitting passenger-side in a rally car! Each week, new episodes will launch on the AutoblogVR App. We'll be posting them here on Autoblog, but for the best experience, head over to the app, which you can download for free from the App store and Google Play. Be sure to try it with a cardboard viewer, too! Subaru Videos VR Original Video virtual reality david higgins 360 degree