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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

Subaru STI version of Viziv Performance Concept will debut at Tokyo Show

When Subaru revealed the Viziv Performance Concept at the Tokyo Motor Show, there were many rumblings that it previewed the next Subaru WRX. That possibility seems much more likely now that we've had a glimpse at Subaru's concept for the Tokyo Auto Salon, the Viziv Performance STI Concept, which could be a preview of the next WRX STI. Though we only have a couple teaser images to work with, we can clearly see that it's a flashier machine all-around. In the grille is the trademark pink STI badge, and it's matched by pink accent lines in the grille, the front lip spoiler, new air inlet, side skirts, and on the rear wing. And in true STI fashion, the rear wing is enormous. It also looks like the fender flares may be slightly wider than the standard Viziv concept. Other than what we can see, we don't know much else about this concept. Since it's a Subaru, it's sure to have a flat-4 engine and all-wheel drive. We can also make out the roof sensors from the last Viziv, indicating that this, too, will have fancy driver assistance systems. And if the development of the Subaru Ascent from the Viziv-7 is anything to go by, this concept will probably lead to a production model. As we've said before, though, we'd caution Subaru fans against high hopes, since Subaru has already shown in the past that its concepts don't always translate to production. Related Video: Image Credit: Subaru Tokyo Auto Salon Subaru Concept Cars Performance Sedan subaru viziv perfromance concept

Subaru Forester named Motor Trend 2014 SUV of the Year [w/video]

Each year, Motor Trend hands out its coveted Golden Calipers to its Car, Truck and SUV of the Year, and in the latter category, this year's bragging rights belong to the redesigned Subaru Forester. In the 14-year history of the SUV award category, Subaru is the only automaker to win three times (2009, 2010 and 2014) and the Forester is the only model to make a return appearance having also won the award back in 2009. In the last six years, this award has either gone to a Subaru or to a luxury crossover/SUV (Mercedes GL-Class in 2013, Land Rover Range Rover Evoque in 2012 and Porsche Cayenne in 2011).
Out of the 13 new or updated crossovers and SUVs in contention for the award, the 2014 Forester came out on top thanks its value, fuel efficiency and fun-to-drive attitude. Rather than a head-to-head battle, the utility vehicles are all judged on six criteria (design, engineering, efficiency, safety, value and performance of intended function). Other vehicles on the consideration list included the Acura MDX, Jeep Grand Cherokee, Land Rover Range Rover Sport and Toyota RAV4.
Scroll down for a video report from Motor Trend as well as a press release from Subaru.