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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

2018 Subaru Outback to show fresh new face in New York

The refreshed and facelifted 2018 Subaru Outback was revealed today, just ahead of its debut next week at the 2017 New York Auto Show. While not all new, the Outback gets a more aggressive appearance, improved ride and handling, and some new standard and optional equipment. Pricing hasn't been announced, but the 2018 Outback will go on sale sometime later this year. While there haven't been many changes to the overall body, the Outback's front and rear fascias have been updated to fall in line with the rest of Subaru's lineup. The C-shaped headlights and wide grille recall the new 2018 Subaru Crosstrek. According to Subaru, the shape is supposed to remind you of the boxer engine design, with the lights moving outward from the grille. The LED headlights are available with a feature that points them in the direction of the steering wheel. Limited and Touring models come with automatic high beams courtesy of Subaru's EyeSight safety suite. New cladding on the front is intended to better protect the body from dirt and rocks when soft-roading. There will be new wheel designs across the entire Outback range. 2.5i base and Premium models come with 17-inch wheels, while Limited and Touring models come with 18-inch wheels. All models except the range-topping Touring come with roof rails with retractable crossbars. The Touring comes with low-profile rails and detachable crossbars. Subaru claims improvements to the Outback's chassis and suspension provide a smoother, quieter ride than the current model. The brakes and the electronic power steering have also been retuned for a more linear response. Improvements to the CVT, the door mirrors, side glass, and wheel wells should help quell some road noise. There have been upgrades to the interior, including a redesigned center console. Backseat passengers now have access to two USB ports. New materials and colors will be available for both the seating surfaces and trim pieces. Subaru also says an improved air conditioning system will cool the cabin more quickly than before. The 2018 Outback gets the latest version of Subaru's Starlink infotainment system. That means Bluetooth phone and audio, Apple CarPlay, Android Auto, and a TomTom navigation system with three years of map updates in the top level models. The standard touchscreen is 6.5 inches, while an 8-inch system is an available option. Premium, Limited, and Touring models get over-the-air WiFi updates.

Subaru PHEV coming later this year using Toyota Prius Prime tech

Subaru plans to release an all-wheel drive plug-in hybrid later this year, and has joined forces with a league of Japanese automakers and suppliers to make it happen. Subaru has said the PHEV will be a conversion of a current model, but hasn't named the model. The prominent hybrid bits are expected to come from the Toyota Prius Prime — Toyota has a 16.5 percent stake in Subaru — but Subaru will retain its longitudinally mounted boxer engine. We know that said Subie will be built in Japan and sent to the U.S, so theories have coalesced around the Crosstrek or Forester, built at Subaru's Gunma, Japan factory. The Crosstrek was just redesigned for 2018, the 2019 Forester is expected sometime this year. If the model ends up being a Crosstrek PHEV, that would mean hybrid lightning striking that car twice: Subaru introduced a Crosstrek Hybrid in 2013, then removed it from the market in 2017 after slow sales. Assuming a wholesale transplant from the Prius Prime, the Subaru PHEV would get an 8.8-kWh lithium-ion battery that can be recharged at a household outlet in under six hours. The Prius Prime is rated at 133 mpge, 54 mpg combined, and runs for 25 miles in EV mode, but Subaru's model being all-wheel drive will likely alter those numbers. Subaru will launch its PHEV first in the 10 states that adhere to California's Zero Emissions Vehicle program. The PHEV is part of the Japanese carmaker's multi-year plan to reduce its fleet emissions, first described four years ago. Come 2020, the trademark boxer engines should come with cylinder deactivation and lean burning Atkinson cycles, around the same time that Subaru stops turbodiesel sales in Europe and Australia. The brand's first full EVs are due in 2021, expected to be electric versions of conventionally powered models. To jumpstart its EV research, and make its comparatively small R&D budget stretch further, last year Subaru joined in on the EV Common Architecture Spirit Company with Toyota, Mazda, Suzuki, Daihatsu, Denso and Hino. Related Video: Featured Gallery 2018 Subaru Crosstrek: First Drive View 29 Photos News Source: Autoweek via Carscoops Green Subaru Hybrid toyota prius prime subaru crosstrek