Auto blog

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

GM recalls over 230,000 more Trailblazer-family SUVs over door electronics

Back in August, the National Highway Traffic Safety Administration announced a recall on the General Motors GMT360 SUVs (Buick Rainier, Chevrolet Trailblazer, GMC Envoy, Isuzu Ascender and Saab 9-7X) ranging from the 2005 to 2007 model years and the 2006 GMT370 SUVs (Chevrolet Trailblazer EXT and GMC Envoy XL) due to potential fires associated with the driver's door module. Initially limited to 250,000 units sold or registered in 20 Snow Belt states (and the District of Columbia), the recall has now been expanded to include an additional 193,000 of these SUVs in the US and, according to The Detroit News, 40,000 more sold outside the US, including Canada and Mexico.
Like the original recall, the issue is still a faulty driver's door module that can short out, which could lead to a fire. The Detroit News is reporting that, out of the 443,000 units being recalled, GM says that there were 58 fires that caused 11 minor injuries, and the expanded recall accounted for six fires and one injury. Despite the lower number of fires, the recall notice recommends that owners park their vehicles until the recall repairs has been performed.
On recalled units with functional modules, the repair consists of a protective coating being applied to the module, while vehicles with modules that are not working properly will have the driver's door module replaced. The official recall notice is posted below, and it includes contact information for customers of all five brands.

Future Classic | 1990-1993 Geo Storm and Isuzu Impulse

You don't see a lot of Geo-branded cars on the road these days, despite the fact that the General Motors' captive-import brand was actually pretty successful for around a decade. Perhaps the most recognizable vehicle to roll into Geo showrooms was the Prizm, which basically amounted to a rebadged Toyota Corolla built in California (which means General Motors was competing against its own Chevy Cavalier in the compact sedan market). And then there were the Geo Metro sub-compact, known for years as the most fuel-efficient vehicle you could buy in the United States, and the spunky Geo Tracker SUV that carried on for several years wearing Chevrolet badges after Geo's demise. Those are all interesting vehicles, but for this article we're going to focus in on the sporty Storm model. Like the other Geo vehicles, the Storm was sort of a joint venture, in this case with Isuzu, the Japanese automaker best known for making SUVs and big commercial trucks. Back in the day, though, Isuzu had some legitimately intriguing little cars in its showrooms. The Storm was based heavily on the second-generation Isuzu Impulse (known as the Piazza in other markets). And, well, you see even fewer Isuzus on the road these days than Geos. MotorWeek | Retro Review: '90 Geo Storm GSi Why are the Geo Storm and Isuzu Impulse future classics? They may never actually be "classics" in the same way a Ford Mustang or Chevy Camaro may be, but they are still interesting cars. And for potential buyers of a certain age, memories of gawking at sleek-looking Geo Storms everywhere you looked mean the nostalgia factor is high. If nothing else, we're pretty sure a nicely kept Storm or Impulse would draw a certain crowd at a local car show. While the Storm was way more popular with American buyers in the 1990s, the rarity of the Impulse means it's probably the more desirable option if future collectibility is a factor. What is the ideal example of the Geo Storm or Isuzu Impulse? The most valuable version of the duo is surely the rare Isuzu Impulse RS (the silver car above) with all-wheel drive and a turbocharged 1.6-liter four-cylinder engine that spun out 160 horsepower and 150 pound-feet of torque. According to reports, only about 600 of these machines were sold in the States — complete with "Handling by Lotus" badging (General Motors held sizable stakes in both brands at the time) — which means they aren't very easy to find for sale.