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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

Turbocharged Datsun 510 oozes old-school cool

According to host Matt Farah, one of the best ways to find cool cars is, quite simply, to keep your eyes open when out driving yourself. In the case of this sweet custom Datsun 510 Coupe, we're not sure which sense is better: Sight, to take in its lovely blue hues and timeless shape, or hearing, to absorb the good vibrations emitted by the turbocharged beating heart that has been lovingly transplanted underhood. For those keeping track, Farah says it now makes almost four times its original 95 horsepower. Fortunately, you don't have to choose a single sense to focus on. A quick click of the play button above is all you need to both see and hear this charming blue Datsun take to the road, with Farah happily behind the wheel. As an added bonus, you'll be treated to some truly beautiful vistas as the car snakes through some serpentine roads, wastegate and blow-off valve whistling like a tea kettle all the way. News Source: Tuned via YouTube Aftermarket Nissan Coupe Special and Limited Editions Performance Classics Videos drive datsun datsun 510 tuned

Nissan explains why GT-R LM Nismo is front-wheel drive

History and conventional wisdom tell us that a racing car should be either rear-wheel drive or have its engine in the middle (or, preferably, both). Considering this, Nissan's decision to field a front-wheel-drive, front-engined race car at the 2015 24 Hours of Le Mans is at least a little bit strange. Why, though? Why is Nissan ignoring literally decades of evidence to the contrary with the new GT-R LM Nismo? As the company's driver, Jann Mardenborough tells it, the layout plays to the all-consuming pursuit of optimum aerodynamic efficiency. Check out Nissan's full explanation behind the front-drive GT-R and get a taste of the company's FWD racing pedigree, in the video attached up top.