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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

2020 Subaru WRX STI S209 Prototype First Drive Review | The best is just for us

We're about 70 miles southwest of Tokyo on the grounds of Fuji International Speedway. Yoshihide Yano puts his hand on the camouflaged carbon fiber roof of the 2020 Subaru WRX STI S209 prototype we're about to drive and smiles. "This will never make a business case," says the assistant manager of Subaru's North America Business Planning Department. "We don't want to make more than 250. The more we make, the more money we lose." From the wince of his co-workers, Yano is clearly off the script, but his statement isn't a huge surprise. Building the STI S209 is complicated and time-consuming, with most of its extensive engine, suspension and aerodynamic modifications being installed by hand at STI's small off-site headquarters just outside Toyko. Founded in 1988, Subaru Technica International is the automaker's motorsports division and employs only 120 people. It can produce just two cars a day. Subaru STI Car Show View 30 Photos And why not show off your fastest street car ever on Fuji's world-class 2.8-mile road course? Especially today, while the track is packed for its annual STI Motorsports Day, a yearly pilgrimage for the brand's faithful. The place is flooded with WRXs, BRZs, and models we don't get in America like the Levorg STI Sport, a hot rod version of its mid-size wagon. Although STI's new Super GT and Nurburgring race cars are making hot laps on the main circuit, our drive of the inexplicably camouflaged S209 (which was fully revealed at the Detroit Auto Show) is on a small half-mile road course tucked away in a remote corner of Fuji's massive acreage. And we get just three laps. 2018 Subaru WRX STI S208 View 15 Photos STI's S-Line of cars have been the brand's most capable machines since the S201 launched in 2000, but the S209 will be the first S-Line model sold in the United States – and exclusively in the United States, for that matter. It will also be the first S-Line WRX that won't be powered by a modified version of the brand's venerable 2.0-liter EJ20 engine family, which Subaru introduced in 1989. The company says the EJ20 cannot meet emissions and make more than 300 horsepower on our low-octane fuel. The fix for this is a version of the turbocharged EJ25 series, which has powered every U.S.-spec WRX STI since we got it in 2003. To create the S209, STI's engineers started by mixing together certain parts from both the S208 and the 310-hp WRX STI RA Subaru sold in America last year.

Subaru breaks all-time sales record well before year end

In case you needed a reminder, Subaru is hot. The Japanese all-wheel-drive specialist is doing so well that it broke its 12-month sales record in just 11 months. That's great, but even more impressive is that this is the company's seventh successive record-breaking year and its eighth year of overall growth. Through November, the bulk of Subaru's sales came from its strong crossover lineup – the Forester, Outback, and XV Crosstrek accounted for 350,000 of the company's 513,000-plus sales. As for the Impreza, Legacy, and high-performance WRX/STI, there were also "significant year-to-date increases," according the company's official release. You can expect a full report on not only Subaru's November and year-to-date numbers, but the entire industry's sales figures, in our latest installment of By The Numbers. Stay tuned. Related Video: SUBARU OF AMERICA BREAKS ALL-TIME SALES RECORD AHEAD OF NOVEMBER SALES REPORTING Cherry Hill, N.J. - Subaru of America, Inc. has reported it has broken its previous yearly sales record with a month of the year still remaining. Sales for 2015 have now surpassed the previous annual sales record of 513,693 vehicles set in 2014 and mark the company's eighth year of sales growth and seventh successive sales record. Sales in 2015 have been driven by the Forester, Outback and Crosstrek carlines. Combined, the three crossover vehicles now retail over 350,000 units per year. Subaru sedans; Legacy, Impreza and WRX/STI, have also seen significant year-to-date increases. Thomas J. Doll, president and chief operating officer, Subaru of America, Inc. said; "We are delighted to be celebrating yet another record. Our continued growth is built on strong products and outstanding retailers providing a great customer experience. We thank all of our retailers for their continued commitment in making these record-breaking sales possible. Given consumer demand for our products, we expect a strong close of 2015." Full month and year-to-date sales figures for November 2015 will be released on December 1. About Subaru of America, Inc. Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan. Headquartered at a zero-landfill office in Cherry Hill, N.J., the company markets and distributes Subaru vehicles, parts and accessories through a network of more than 620 retailers across the United States. All Subaru products are manufactured in zero-landfill production plants and Subaru of Indiana Automotive Inc.