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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

Suzuki Samurai lives on with new Jimny facelift

The Suzuki Jimny is "sold across 188 global markets," but one of them isn't ours. For UK buyers who can buy a Jimny in SZ3 or SZ4 trims, the 2013 model has just been introduced with tweaks peppered throughout the vehicle. First among them is a soft redesign up front, a new bumper, grille and hood updating the face and adding an extra 30 mm to the length of the little SUV. Breeze Blue metallic paint is a new hue but it's only available on the more expensive SZ4.
Inside, customers will find new headrests and ISOFIX child seat fasteners for both Jimny versions, and for the SZ3, new seat fabrics. The 1.3-liter engine with variable valve timing growls out 84 horsepower and 81 pound-feet of torque, returning 39.8 Imperial combined mpg if fitted with a manual, 38.7 Imperial mpg combined in the automatic.
On-the-road prices are £11,995 ($19,016 US) for the SZ3, £12,900 ($20,451 US) for the manual-equipped SZ4, £13,800 ($21,877 US) with the automatic. More information can be found in the press release below.

Spiders Force Suzuki To Recall Midsize Cars

Spiders have forced Suzuki to recall more than 19,000 midsize cars. The automaker says spider webs can clog a fuel vapor vent hose in some 2010 to 2013 Kizashi cars, cutting off air flow. If that happens, it can cause the gas tank to deform, causing cracks, fuel leaks and possible fires. The recall was prompted by seven reports of the problem. Service centers will replace the vent line with one that has a filter on the end. They'll also replace gas tanks if necessary. The problem hasn't caused any accidents or injuries in the U.S., Suzuki said in documents posted Wednesday by the National Highway Traffic Safety Administration. Owners will be notified this month. Those with questions can call Suzuki customer service at (800) 934-0934. American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection in November of 2012 and stopped selling automobiles in the U.S. The recall is the second caused by spiders this year. In April Mazda recalled 42,000 Mazda6 midsize cars in the U.S. with 2.5-liter engines for a similar problem. The recalled cars were from the 2010 through 2012 model years. Recalls Suzuki Safety spider