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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 Viziv-7 Concept | Autoblog Minute

Subaru showed off it's truly-American sized three-row SUV at the 2016 LA Auto Show. Subaru SUV Autoblog Minute Videos Original Video autos subaru viziv-7 concept

2019 Subaru STI S209 Drivers' Notes | An old-school sports sedan unites two of our editors

The 2019 Subaru STI S209 is peak Subaru for America. It’s the most powerful and most expensive vehicle with the Subaru badge on it, and there will only ever be 209 of them sold. ItÂ’s put together in STIÂ’s small shop in Kiryu, Japan, where workers build approximately 2-3 cars per day.  SubaruÂ’s long-used 2.5-liter EJ25 turbocharged flat-four is back for another round, but itÂ’s been modified to make more power than a regular WRX STI. The redesigned intake, larger HKS turbocharger and better-flowing exhaust system ramp output up to 341 horsepower and 330 pound-feet of torque, gains of 31 and 40 respectively over a regular STI. It can hit 60 mph in 4.9 seconds and tops out at 162 mph. A huge number of changes were made to the suspension, steering, aero and brakes to make the S209 drive better and produce quicker lap times on track. You can read a full deep dive into all of the intricate changes in our First Drive story here. A couple of Autoblog staffers, News Editor Joel Stocksdale and Senior Producer Chris McGraw, happened to spend some time in S209s in their respective portions of the country. Check out their thoughts in the discussion below. Chris McGraw: So how was the 2019 Subaru STI S209? Joel Stocksdale: When the S209 showed up, I was excited to drive such a special car, but I was also unsure I would like it. It's massively expensive, and I already had mixed feelings about STIs to begin with. They have an ornery, old-school nature that has frustrated me before, especially the slow-spooling engines. But man, I'm in love with this thing.  CM: That's interesting to hear. For those who don't know, you and I rarely see eye to eye when it comes to cars, so I was eager to hear your thoughts on the S209. I drove this back in early November, and it had been awhile since I had driven an STI in general. The frustrating, ornery, old school nature is something I love about the STI, and I adored driving it from the start, especially in the mountains. Though I wish it had been on winter tires for the cold weather at the time.  JS: That's totally understandable. The summer tires on this thing are not happy with snow and cold. But thankfully it's been dry and warm enough here that they're still good. And that's one of the things I love about this car. Between the tires and the all-wheel drive, it has astounding grip. Turn the wheel, put the hammer down, and let it claw you around corners.