2015 Subaru Wrx Sti Launch Edition on 2040-cars

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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

Spy photos show new Subaru BRZ prototype testing on public roads

A next-generation Subaru BRZ prototype was spotted near the company's southeast Michigan R&D center in convoy with an EcoBoost-powered Ford Mustang coupe, giving us both our first good look at the overhauled coupe and some hints at where it will fit in the performance car hierarchy.  This prototype is still wearing a fairly extensive camouflage wrap, but at least it's form fitting, showing off a silhouette that looks an awful lot like the current BRZ's, with a few key exceptions. Most notably, this prototype appears to lack the current car's exaggerated front and rear fender lines, opting instead for a cleaner, sleeker shape. The rear end is reminiscent of the old Hyundai Genesis Coupe's, or even a Mercedes-Benz C-Class Coupe's from some angles, sporting what appears to be a rather pronounced ducktail-style integrated trunk spoiler. Encouragingly, the prototype here is visibly smaller than the Mustang against which it is being benchmarked. While it would be tempting to jump to the conclusion that Subaru is targeting the Mustang for power output, keep in mind that the lighter Subaru and Toyota coupes won't need quite as much power to keep up with the larger, heavier pony car. Expecting the twins to offer the 300-ish horsepower of a base EcoBoost Mustang is probably rooted more in wishful thinking than reality.  The fact of the matter is that we're just not certain exactly what Toyota and Subaru have planned for the next-gen coupes' powertrains, but they are expected to ride on Toyota's New Global Architecture platform. That opens the door to various longitudinal offerings within Toyota's portfolio, including turbocharged four-cylinders and even some sixes, though we sincerely doubt the companies have any plans to offer anything larger than a four-banger in these compact coupes.  Just last month, we reported that Subaru had ended orders for the 2020 BRZ in its home country of Japan, and we've heard rumors that the new coupe could debut some time in 2020, with a production car coming for the 2022 model year. These spy shots, which serve as evidence of just how far along development on the replacement has come, lend some credibility to those hints. We expect it's also indicative of the state of the BRZ's Toyota twin, the GT86.  Related Video:

Submit your questions for Autoblog Podcast #344 LIVE!

We're set to record Autoblog Podcast #344 tonight, joined by Doug DeMuro, author of Plays With Cars, formerly of Porsche Cars North America, and all-around swell guy. You can drop us your questions and comments via our Q&A module below, and we'll give them extra-diligent attention. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #344
BRZ STI?