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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

Nissan's Carlos Ghosn taps the brakes on autonomous car progress

"Self-driving cars remain a long way from commercial reality."
Nissan CEO Carlos Ghosn shocked the automotive industry last year when he announced that his company plans to offer consumers an autonomous car by 2020. The automaker even showed off its self-driving Leaf prototype as proof. He was bolder recently with the pronouncement that select markets could have them in 2018, if laws allowed. The boss' optimism appears to be waning, though, and he's now sounding a lot more conservative about the future. While driverless vehicles are still on the way, Ghosn is hedging his bets with a more gradual implementation of several systems.

New Nissan Leaf looking more and more like 105-mile EV

The next-generation Nissan Leaf could see the light of day as soon as 2017. In the meantime, the Japanese automaker may have a treat for electric-vehicle enthusiasts. Think of it as a 21-mile salute. Looking to spur what's recently been lagging sales, we're hearing rumors that Nissan might offer a top-of-the-line Leaf that will include a 30-kilowatt-hour battery instead of the standard 24-kWh version this fall, Hybrid Cars says, citing InsideEVs. That means that the Leaf's 84-mile single-charge range could be extended to about 105 miles. "We have made no public announcement about the 2016 Nissan LEAF," Nissan spokesman Brian Brockman told AutoblogGreen. "We do not comment on future product details." Nissan could use something fresh with the Leaf, which has a sales pattern that was up last year but down in 2015. Through April, Leaf sales were down 22 percent from a year earlier to 5,638 units. That outpaces the Chevrolet Volt extended-range plug-in by a two-to-one margin, but the second-gen Volt is due some time this fall. As for details on the next-generation Leaf, few have emerged. We've heard the car will look less quirky and, of course, be equipped with a longer single-charge range, but beyond that, it's all a bit of a mystery. Related Video: