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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

Junkyard Gem: 2010 Mitsubishi Lancer Sportback GTS

The Mitsubishi Lancer was available in the United States from the 2002 through 2017 model years, and nearly all of those cars were four-door sedans. The exception was the Lancer Sportback, a name first applied to a 2004-only wagon version and then to a hatchback Lancer sold for the 2010-2014 model years. I'm always looking for unusual Mitsubishis during my junkyard travels, be they obscure examples of badge engineering, long-forgotten marketplace failures or confusing special editions. Here's a 2010 Lancer Sportback, found in a Denver self-service yard recently. The Lancer name has a lengthy history in the United States, but all of it during the 20th century involved Dodge models. For 1955 through 1959, the Lancer name was applied to hardtop versions of Dodge's Royal, Custom and Coronet. Then it was used for the Dodge-badged version of the Plymouth Valiant for 1961 and 1962, with the Dart name gradually squeezing the Lancer name to the side during that second year. Lancers returned to American Dodge showrooms as members of the extended K-Car family, with rebadged Chrysler LeBaron GTSs sold here for the 1985 through 1989 model years. Mitsubishi began building its own Lancers all the way back in 1973, and some of those cars were sold here during the 1970s and 1980s as Dodge Colts, Dodge Challengers, Plymouth Sapporos and Plymouth Arrows. Plenty of manufacturers have used variations of the "Sportback" designation over the decades, with one of the earliest being the Nissan Pulsar NX Sportbak. Buick sold Regal Sportbacks as recently as 2020, and Audi still uses the term here today. The "Liftback" name enjoyed prominence for quite a while but has faded from mainstream use in recent years, while the "Wagonback" appellation never caught on despite Geo's best efforts. The 2010 Lancer Sportback was available in two trim levels: GTS and Ralliart. The Ralliart got a turbocharged engine, all-wheel-drive and a six-speed dual-clutch automatic shared with the Evo; the GTS had front-wheel-drive and a five-speed manual as base equipment (this car has the optional CVT with paddle shifters). The engine is a 2.4-liter straight-four rated at 168 horsepower and 167 pound-feet of torque; the Ralliart had 237 horses and 253 pound-feet. The MSRP for the 2010 Lancer Sportback GTS was $19,190, or about $27,193 in 2023 dollars. This one appears to have endured some lean times during its final months or years on the road, with several field-expedient repairs performed with tape.

Renault-Nissan-Mitsubishi adopts Android infotainment in coup for Google

PARIS — The Renault-Nissan-Mitsubishi carmaking alliance said on Tuesday it will adopt Alphabet's Google Android operating system, handing a victory to the U.S. tech giant as it pushes for a bigger share of the infotainment market. Renault, Nissan and Mitsubishi, with combined sales of 10.6 million vehicles last year, said future models will "integrate Google applications and services" including Maps and the voice-commanded Google Assistant. The move, first reported by the Wall Street Journal, leans more heavily on Big Tech than large or luxury rival carmakers have hitherto been willing to do. Many fear losing control of customer relationships, data and potentially significant future revenue from connected services. Some smaller manufacturers such as Volvo Cars have decided to embed Android Auto in their vehicles. But the scale of the shift by Renault-Nissan-Mitsubishi may cause a broader rethink of costly standalone tech strategies. "Major carmakers earlier were reluctant to do business with Google, but this has now changed," said Jauke de Jong, a research analyst at AFS Group in Amsterdam. "More carmakers could follow suit and partner with Google." Until now, carmakers have largely chosen Linux, Microsoft or QNX software to power infotainment. That yields clunkier platforms they can control, but which offer little scope to add new apps or functionality. Far more than just hooking up a phone The news may spell trouble for certain existing auto-tech suppliers such as mapping specialist TomTom, which counts Renault among its customers. Shares in the Dutch group fell by more than quarter after the announcement. In return for handing Google the infotainment keys, the alliance will bring the full clout of Android's thousands of apps to its brands' lineups — which include a strong contingent of affordably priced, no-frills models for emerging markets. The partnership promises "rich user experiences that are currently available only outside the vehicle or, to a limited extent, by connecting an Android device to supported vehicles," alliance development chief Hadi Zablit said. While many volume carmakers offer infotainment "mirroring" to pair with Apple iPhones or Android smartphones, premium rivals such as BMW and Daimler's Mercedes-Benz are investing heavily in their own operating systems, vocal assistants and connected services.