1993 Subaru Legacy, No Reserve 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

Takata recall of 10 million replacement airbag inflators could get even larger

Takata is recalling 10 million replacement air bag inflators in the United States, the largest ever auto safety recall in history, as U.S. regulators consider whether to expand its scope to include modules that have not yet been the subject of a recall campaign.  Nearly every OEM that sells cars in the U.S. falls under the umbrella of this replacement part recall, including the Detroit Three, Honda, Toyota, Nissan, BMW, Daimler, Subaru and Volkswagen (including Audi).  The 10 million inflator recall made public in early January covers inflators that were a temporary fix. The figure includes some replacement modules that never made it into customer vehicles. Several automakers, including Subaru, have already initiated campaigns to replace the previously recalled inflators with updated parts. Separately, the National Highway Traffic Safety Administration (NHTSA) is assessing whether to compel the recall of tens of millions of additional Takata air bag inflators that have a drying agent. It is also reviewing petitions from General Motors Co to avoid recalling more than 6 million vehicles with Takata inflators. GM has said it could cost $1.2 billion if it had to recall the vehicles. Prior to Wednesday, 41.6 million U.S. vehicles equipped with 56 million defective Takata air bags have been recalled because the inflators can explode when deployed. At least 25 deaths worldwide and more than 290 injuries have been linked to faulty Takata inflators. The Takata recalls cover about 100 million inflators among 19 major automakers worldwide. NHTSA says the cause of the inflator explosions that can emit deadly fragments is propellant breaking down after long-term exposure to high temperature fluctuations and humidity. The vehicle inflators recalled to date do not have a drying agent. Under a 2015 consent order, Takata had to provide data to U.S. regulators by Dec. 31 about whether tens of millions of additional so-called desiccated inflators need to be recalled. Acting NHTSA Administrator James Owens told Reuters the agency was reviewing data on the desiccated inflators and talking to automakers. "We are going to lean in on safety and if we detect a safety problem we will immediately take action," Owens said, adding that the agency could make a decision early in 2020.

Subaru uses a mime and a toy car to explain why it loves the boxer engine

I will freely admit to struggling with why Subaru continues to stubbornly employ a boxer engine design while so few other automakers do the same. After all, with twice the number of cylinder heads and cams as a traditional inline four-cylinder engine, a boxer four is more complex, more expensive to manufacture and more cumbersome to service with few tangible benefits. Until recently, the company's engines struggled to meet the fuel economy numbers of its competitors while offering no real boon in horsepower or torque. Subaru seems to recognize I'm not the only one scratching my head.
In order to help us non-believers understand what's what, the company has employed a pair of mimes, a toy car and a few clay engines to demonstrate the folly of every other automaker on the planet. Subaru says the boxer offers up a lower center of gravity than either an inline four-cylinder engine or a V6, which I will gladly concede. The company also says the design offers up smoother operation.
I'll offer just two counterpoints here. First, an engine with a low center of gravity is excellent, but when vehicles like the Forester, XV Crosstrek and Outback boast more ground clearance than most mainstream SUVs, that argument flies out the window. Second, anyone who's spent any amount of time behind the wheel of a vehicle equipped with an inline four and then proceeded to move into one propelled by a boxer can tell you the latter has all of the idling manners of a small tractor. Check out the video below to see for yourself.