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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

Former Mitsubishi CEO Osamu Masuko dies at 71

TOKYO — Former Mitsubishi Motors Chief Executive Osamu Masuko, who engineered the Japanese automakerÂ’s alliance with Nissan, has died. He was 71. Masuko was named a special adviser to the company when he resigned for health reasons as of Aug. 7. Mitsubishi said he died of heart failure on Aug. 27. Masuko joined with former Nissan Chairman Carlos Ghosn in forming an alliance in 2016. Ghosn was arrested and charged with alleged financial misconduct in late 2018, but skipped bail and fled to Lebanon. After he was named president of Mitsubishi Motors in 2005, Masuko worked hard to rebuild its brand image, which had been hammered by a massive, systematic and decades-long cover-up of defects that surfaced in the early 2000s. Calm and soft-spoken, Masuko came to symbolize Mitsubishi Motors' revitalization. Masuko had said he was stunned and saddened by Ghosn's arrest. “I still canÂ’t figure out why, and I just donÂ’t understand,” he told reporters then. Nissan Chief Executive Makoto Uchida offered his condolences. “His wisdom and foresight will remain as an inspiration to the automotive industry, and we will always honor his memory,” Uchida said, stressing his role in building the alliance as well as other contributions to the overall auto industry. Mitsubishi's alliance with Nissan and Renault of France was seen as an astute move, giving the automakers an edge in an increasingly competitive global market. “During his tenure for about 16 years at MMC, Masuko made great achievements by fully demonstrating his management skills, which also enabled the company to overcome difficulties,” Mitsubishi Motors said. Masuko helped build the companyÂ’s business in Southeast Asia, a key source of growth. He also aggressively pushed the development of greener models. Masuko studied political science and economics at Waseda University and did not have an engineering background. He joined trading company Mitsubishi Corp. in 1972. In 2004, he joined Mitsubishi Motors, which makes the Pajero and Outlander sport utility vehicles, as managing director of its overseas operations. Tokyo-based Mitsubishi Motors said it is not planning any special services, respecting MasukoÂ’s wishes. The family has already held a vigil and funeral, it said. Related Video:

2023 Mitsubishi Outlander PHEV to get a much bigger battery

So it turns out we still don't have full details on the 2023 Mitsubishi Outlander PHEV. Information will continue to trickle out instead. But at least we have information on one of the SUV's most critical parts: the battery pack. It has more capacity, and should have more range. The outgoing Outlander PHEV had a 13.8-kWh battery pack good for 22 to 24 miles of all-electric range. The new model's battery expands to 20 kWh. On the WLTP cycle, it's good for 54 miles, but the U.S. EPA numbers will probably be lower. The capacity increase is about 45%, so applying that to the miles, we're expecting somewhere around 32 to 35 miles of electric range. That would put it close to the Ford Escape PHEV's 37 miles of range and the Kia Sorento PHEV's 32 miles. It would still trail the RAV4 Prime's 42 miles of range. Mitsubishi also noted that the gas tank has expanded, too, so the Outlander PHEV's overall range should increase. Despite all this, the plug-in hybrid also retains a third row of seats, something its predecessor lost. This is due to a revised rear motor that includes the motor controller as part of the unit. The previous model had the controller located in the passenger compartment. Mitsubishi says this freed up interior room for the rear-most seats and also reduced the amount of high-frequency noise in the cabin. As for the powertrain itself, Mitsubishi isn't sharing output details. All it has said is that the Outlander PHEV still has dual electric motors, plus a gas engine. That engine is a 2.4-liter four-cylinder similar to the current model. The press release Mitsubishi provided suggests the electric motors are more potent, so we may see more than the 221 combined horsepower of the outgoing model. The Outlander PHEV will go on sale in the United State in the second half of next year. We should have many more details on it as we approach the on-sale date. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2022 Mitsubishi Outlander exterior and interior walkaround