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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

UK designer to make WRX Concept-aping body kit for production Subaru

Remember the Subaru WRX Concept shown at the 2013 New York Auto Show, the one almost everyone loved but no one expected Subaru to make? Indeed, that Parnassian "design statement" led to a production design that came from a good middle class neighborhood known for its office parks and pasture land. UK designer Michael Bond is offering to change that, the man behind the yet-to-be-produced Rumbler "Superhero Utility Vehicle" touting the Subaru WRX Concept 13, which would take a customer's new WRX and turn it into something pretty close to the original concept.
That means new front and rear clips, including a redesigned rear diffuser to increase downforce, but a spoiler can be installed if the buyer decides that what he wants. The car won't be an exact replica of the NYIAS concept since that would infringe on Subaru's intellectual property, but it isn't clear yet how the design would be altered. Bond's site says that once he gets 50 confirmed orders, his team will order a WRX and begin the process of creating the new bodywork. It is claimed that once work begins, it will be four to six months to "[present] a completed model for public view."
Bond says the price will come down depending on the number of orders beyond 50, but doesn't give any indication of how much those first 50 cars could cost. If you're keen, though, head over to the site and fill out the enquiry form. Who knows if the Concept 13 will happen, but so far this is the best chance you have of getting what could have been.

Subaru SVX to be resurrected with hybrid power?

Salt. Get the salt. A new report out of Australia is claiming that Subaru is working on a new SVX. Yes, seriously.
Now, this is not feasible for a pair of huge reasons. First, the demand for a two-door Subaru, as we've seen with the BRZ, has not been tremendous. Second, the original SVX was a pretty horrible seller. Could the world be ready for a revival, though?
According to an unnamed source that spoke to Motoring.com.au, the reborn SVX will be based on the Viziv 2 Concept that was shown at the 2014 Geneva Motor Show, but it will be a considerably more aggressive design, arriving as a low, wide shooting brake. According to the Aussies, the reborn SVX would ride on a new Subaru Global Platform, which will underpin the next-generation Tribeca, because of that platform's support for hybridization.