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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 announces 2019 Crosstrek pricing

For the 2019 model year, the Subaru Crosstrek doesn't get a big refresh, but it does have a couple changes coming down the pipeline. One of those changes is in the pricing. For 2019, the MSRP is up by $100. That means the base price for the Crosstrek 2.0i equipped with the six-speed manual transmission — the most bare-bones version — is $22,870, which includes the $975 in destination fees. So what's new for 2019? For one, Subaru's EyeSight driver assist technology — which includes adaptive cruise control, lane keep assist, pre-collision braking and lane departure and sway warning — is available on the CVT-equipped base model. It's an $845 option, totaling $28,745. The Crosstrek Premium, which begins at $23,870, now comes with the 6.5-inch multimedia as standard. The Crosstrek Limited, at $28,170 has EyeSight, automatic braking and high beam assist as standard equipment. The Subaru Crosstrek, regardless of trim level, is all-wheel-drive, and powered by a 2.0-liter four-cylinder providing 152 horsepower and 145 pound-feet of torque. That is mated either to a six-speed manual or a continuously variable transmission. The CVT in Premium and Limited trims also offers a seven-speed manual mode with paddle shifters mounted to the steering wheel. CVT models also come with X-Mode and Hill Descent Control for loose or slick roads or off-road driving. The Subaru Crosstrek offers fuel economy figures of 23 miles per gallon city/29 highway/25 combined for manual-equipped models. The CVT-equipped version offers 27/33/29 mpg. If that's not good enough for you, you won't have to wait long for something better. Subaru has announced that the 2019 Crosstrek will be its first model to receive a plug-in hybrid powertrain, available by the end of this year. We don't know what the pricing will be on that, yet, though. Related Video:

Next-generation Subaru Forester spotted with minimal camouflage

Though the Subaru Forester received a slight refresh last year, the crossover is due for a full redesign, since its bones date back to the 2014 model year. That redesign is coming soon though, as revealed by these spy shots. The crossover looks relatively similar to the current one, but it's completely new underneath. As for the outside, it's definitely an evolutionary design. The boxy shape and signature grille clearly derive from the current model. But there are changes. The prow doesn't slope back as much as the current one. Instead, it's nearly upright, and the corners are pushed forward, too. It gives the Forester a more truck-like appearance. The headlights also look as though they sit higher and wrap around more. The lower vents that were integrated in bumper creases on the current one appear to have disappeared, as well, perhaps for a more conventional front bumper. Moving to the side and the back, we can just make out some slightly more complicated surfaces on the flanks. They look a bit like the subtle creases found on the Impreza and the Crosstrek. The taillights also appear to be inspired by the new Impreza and Crosstrek. Rather than the small units in the body of the current Forester, the new lights extend into the rear hatch. Not only does this bring the crossover's styling in line with Subaru's other offerings, this may improve the size of the hatch opening, as Subaru says the Impreza's new lights did. Underneath the modest redesign should be Subaru's global architecture, which currently underpins the Impreza and Crosstrek. Our experience with both of those cars showed that the platform has yielded agile handling and solid ride quality. And if the Forester continues to offer a turbocharged engine, it should rectify the power (or rather, lack thereof) in the Impreza pair. The platform will also underpin the upcoming three-row Ascent SUV, which is expected to be released next year. With that in mind, and the near production-ready body, we'd say we'll see the new Forester revealed either at the end of this year, or early next year. Related Video: Featured Gallery 2019 Subaru Forester View 9 Photos Image Credit: KGP Photography Spy Photos Subaru Crossover