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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 teases Viziv concept ahead of Geneva

Subaru will be stocking its display at the Geneva Motor Show next month: The European debut of the Subaru Forester joins the world premiere of a diesel Outback with Lineartronic CVT and a display called Subaru 360 that showcases the "brand's history and future vision."
The genuine future-speak, however, is intended to be conveyed by the Viziv concept (click the image above to enlarge). This name "Viziv" is culled from the phrase "Vision for Innovation," and the "future-generation crossover" that bears the 25th-century name has been designed to be an embodiment of "enjoyment and peace of mind."
That's quite a holistic burden for just one crossover. In the more mundane world, the Viziv will suggest Subaru's new design and technology directions. Subaru has created a mini-site for the concept that will be updated during the show, but for now, it just lets us know that March 5 will be "the start of something exciting."

2014 Subaru Forester scores 5 stars in NHTSA crash test [w/video]

Having aced the crash test from Insurance Institute for Highway Safety and earning the highest rating of Top Safety Pick+, the 2014 Subaru Forester headed over to the National Highway Traffic Safety Administration for a date with destruction. In the barrage of NHTSA tests, the new Forester met similar results as it did with the IIHS, earning a five-star overall crash rating.
Comparing these number to the previous model, which carried a four-star rating in all areas, the new Forester did much better in the side-impact test to earn a full five stars; frontal and rollover ratings were still at four stars like the old model, but the improved side crashworthiness was enough to gain the NHTSA's highest overall rating. The frontal impact video is posted below, but all the various test videos can be seen on NHTSA's website.