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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 confirms new Outback to debut in New York

Performance enthusiasts may think of the WRX and BRZ when the name Subaru comes to mind, but for many others, the brand is best associated with the Outback. The soft-road version of the Legacy (and the Impreza-based Outback Sport that preceded the XV Crosstrek) is a vital product for the Japanese automaker, which has now confirmed it's bringing the latest version to the New York Auto Show in just a couple of weeks from now. There's little to go on from the teaser image above (which you can click to enlarge) and the press release below, which says only that "The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability." And that much we knew already. It's safe to assume that, like previous versions of the Outback, the new model (which we recently spied undergoing testing) will be based closely on the latest Legacy, albeit upgraded with a higher ride height, lower body cladding and other off-roading enhancements. Watch this space for more. All-New Subaru "Outback" to Make World Debut at 2014 New York International Auto Show Tokyo, April 3, 2014 – Fuji Heavy Industries Ltd. (FHI), the maker of Subaru automobiles, today announced that the all-new "Outback" (US specifications model) will make its world debut at the 2014 New York International Auto Show (Press day: April 16 and 17; Open to the public from April 18 through 27, 2014). The Outback will be unveiled at the press briefing scheduled for 10:55 AM EST on April 17 at Subaru booth following a speech to be made by FHI President & CEO, Yasuyuki Yoshinaga. The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability. The special site opens today at 22:00 (Japan time) on the Subaru Global Site. http://www.subaru-global.com/2014ny.html The site will feature information updates relating to the New York International Auto Show including Subaru's press conference.

Racey Subaru BRZ spied on New York Auto Show floor [UPDATE]

UPDATE: Subaru had the same BRZ out on the show stand this morning, so we added a full gallery. Turns out the car is called Subaru STI Performance Concept... full info available later this afternoon. Subaru is doing something very interesting with the BRZ at the New York Auto Show. Unfortunately, actual details about it are nonexistent at this point, but a user with the screenname The359 posted these two photos from the floor of the event on the FT86 Club forums, by way of an Instagram page. This BRZ appears to get a pretty thorough makeover with big, L-shaped LED running lights on the edges of the more aggressive front air dam, widened fenders and a rather nicely integrated hood bulge, which suggests the possibility of a more powerful engine underneath. The profile photo provides an even better look at the body kit, and it's practically impossible to miss the massive wing at the back that should keep the coupe sticking to the ground. In all, it bears a striking resemblance to the Subaru BRZ Concept STI that was shown at Los Angeles way back in 2011. It's not currently clear whether this is just a high performance concept to tease us, or the more powerful BRZ that many people are looking for. Regardless, the car definitely piques our interest. Related Video: