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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

Toyota Supra and BMW Z5 coming in 2018 from Austria

A German automaker and a Japanese one get together to jointly develop a new sports car. So where do they build it? In Austria, of course! This according to a newspaper based in Graz, where contract manufacturer Magna Steyr is also based. BMW and Toyota have reportedly been working on a joint sports car program for a while. Toyota's version is expected to revive the Supra name and spirit, while BMW's is to replace the aging Z4 roadster and potentially wear a Z5 badge. Details are still up in the air – or on tight lockdown – but we can expect both to feature six cylinders mounted up front, driving the rear wheels through a proper manual transmission. Now Kleine Zeitung reports that both versions will be built on their behalf by Magna Steyr, and that they'll launch in 2018. The contract manufacturer already builds the Mini Countryman and Paceman for the BMW Group, but the Paceman is being discontinued, and the next-generation Countryman is slated to be moved in-house – following the lead of the Porsche Boxster/Cayman and Aston Martin Rapide. Though the Graz facility still builds the Mercedes G-Class and is soon slated to begin manufacturing for Jaguar Land Rover, the Mini crossovers' departure leaves Steyr with leftover capacity. BMW intends to fill some of that with assembly of the 5 Series sedan, but the joint sports car project ought to fill in the rest. This would mark the first time that Magna Steyr would build a car for Toyota – or any Asian manufacturer for that matter, after a previous contract with Infiniti fell through. It wouldn't be the first time the two have collaborated, though: the Kleine Zeitung report indicates that the FT86 Open concept (in the gallery below) was built by the Austrian workshop, which has expertise in crafting convertibles as well. Steyr has done the roof assemblies for the Mercedes SLK and Opel Astra TwinTop, as well as complete production of the Porsche Boxster and Saab 9-3 Convertible, to name just a few. Expect BMW's version to offer some sort of folding roof mechanism, but it's too early to speculate on the prospect of a convertible Supra. Related Video: Featured Gallery BMW Z5: Spy Shots Related Gallery Toyota FT-86 Open Concept: Geneva 2013 View 13 Photos News Source: Kleine Zeitung via Automotive News Europe - sub. req.Image Credit: Copyright 2016 AOL BMW Toyota Convertible Coupe Performance bmw z5

Legendary off-road cars and SUVs that were never sold in America

America has long stood proud as the land of 4x4s, but many of our best-selling off-roaders would flop on the European market due in part to size constraints. Can you imagine trying to park a Ford Bronco Raptor in a town built by the Romans? Or, how much it would cost to fill up a Chevrolet Silverado HD ZR2 if you're paying $8 for a single gallon of gas? Historically, most of the 4x4s sold in Europe have been tailored to the local market. Here are five cool European-market off-roaders that have never received permission to hang out with the Jeep crew in Moab. 2014 Dacia Duster View 10 Photos Dacia Duster In a way, the original Dacia Duster released in 2010 is the NA-generation Mazda MX-5 Miata of Europe's off-roader segment. I'm not talking about handling; it takes a turn with the liveliness of a blimp. But, like the original Miata, the first-generation Duster brought a big serving of modernity to its segment. It gave buyers a far more daily-drivable alternative to the ancient Lada Niva without sacrificing off-road capacity, in the same way that the first Miata provided top-down enthusiasts with a more up-to-date alternative to British and Italian roadsters of the era. Cheap and cheerful, the Duster is closer to a crossover than to a burly, body-on-frame SUV. It's built on a unibody platform, powered by a relatively small four-cylinder engine, and compact enough to zig-zag through crowded urban centers. Unlike, say, the Nissan Qashqai (which we knew here as the Rogue Sport), it was designed for mild off-roading — it appeals to folks who live in rural areas, adventure-minded buyers, and first responders. It wasn't offered with a two-speed transfer case or locking differentials, but models equipped with the optional part-time four-wheel-drive system (front-wheel-drive came standard) featured a six-speed manual transmission with an ultra-low first gear. Dacia sold the original Duster through 2017 in many European countries, though production continued for several more years in overseas markets (where the off-roader often wore a Renault badge). Its successor, which is still built in 2023, arrived in 2017 with the same focus on off-roading but a longer list of features and a nicer interior. More than a decade after its launch, the original Duster remains a common sight.