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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

Airbag recall widens to include BMW, Chrysler, Ford and Toyota

The recall of faulty airbag inflators supplied by Takata has exploded today to grow to seven automakers. In most cases, only models in certain high-humidity regions were affected because the National Highway Traffic Safety Administration found in its investigation that moisture played a roll in determining whether there would be a problem. However, some companies opted for national campaigns. The exact number of affected models for these campaigns isn't yet known at this time.
BMW is recalling an undisclosed number of 325i, 325Xi, 330i and 330Xi models from the 2001 through 2005 model years and the 2001-2006 model year versions of the 325Ci and 330Ci for the driver side and passenger side inflators. Only vehicles currently registered in Florida, Puerto Rico, Hawaii and the US Virgin Islands are covered under this recall.
Neither Chrysler's filing with NHTSA nor its press release list the specific models affected, but a company spokesperson told Autoblog that at this time it only covers the driver and passenger side inflators for the 2006 Dodge Charger in Florida, Puerto Rico, Hawaii and the US Virgin Islands

Nissan owners complain to feds about rusting floors

"You can feel it's soft right here," Jeff Talman told KSHB. "Right under his driver and passenger seats, the floorboards were rusting from the inside out," a KSHB reporter said. "This is a seven-inch area where it's actually rotted up here," Talman said. That was Jeff Talman, just one of many who have had issues with rusting floorboards in Nissan Altimas. KSHB reported the National Highway Traffic Safety Administration has received more than 400 complains about rust issues in 2002-2006 models. NBC highlighted a Chicago woman's 2005 car, which had rusted so much the floorboards were actually crumbling. "The hole was big enough to fit her foot through," NBC reporter Tom Costello said. "I'm not Fred Flintstone. This is not a good thing," Marie DeMaria said. While NBC reports snow and road salt could account for rust damage in some vehicles, that's probably not the cause in places that don't get snow and ice. And complaints are coming in from all over the country. Both Toyota and Ford have recalled hundreds of thousands of vehicles in the past few years because rusting underbody parts made the vehicles fall apart. Despite the number of complaints, Nissan isn't recalling the Altima vehicle models in question. "It's not a safety recall problem that's going to cause immediate death and injury if you have a hole in the floor. As a result of that, what we've seen is that Nissan has been able to get away with this problem," auto safety expert Sean Kane told WBZ-TV. KSHB reports the age of the cars is another way Nissan is able to avoid covering cost to fix them. "Once it's out of the warranty period, obviously they don't have any legal obligation. It becomes more of a customer service issue of whether they want to deal with it or not," body shop owner Bill Eveland said. NBC did reach out to Nissan for comment, but the carmaker reiterated that both it and the National Highway Traffic Safety Administration do not consider the rust problem to be a safety defect. This video includes an image from Getty Images.