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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

Check out the 2017 Subaru Impreza live from New York

We just attended the reveal of the 2017 Subaru Impreza. While we don't have any more details ... yet, we do have live photos and video of the car to tide you over. Subaru will unveil its brand-new 2017 Impreza sedan and hatchback at the New York Auto Show on March 23. The reveal will finally tell us whether the company's designers will bring the sharp styling from its concepts to the road. From what we can see in this teaser, though, the production car won't be quite as forward thinking as we'd like. View 11 Photos Subaru has released a single teaser image of the front end, and we can already see that the headlights look like fairly conventional units. In the conceptual models, LED running lights came to a sharp point that drew the eye to the grille. It was certainly a more interesting design than in this photo. The new Imprezas are the first models to use the Subaru Global Platform, which underpins all the company's upcoming models. It's 70- to 100-percent more rigid than the current chassis and has a 40-percent increase in impact energy absorption. A lower center of gravity and reduced body roll should improve the handling. Subaru also promises the 2017 Imprezas have a more spacious interior and upgraded in-car tech. Subaru's concepts made the new Impreza look exciting, and we still hope some of that translates to production. The hatchback arrived first wearing silver at the Tokyo Motor Show. A red sedan then added a trunk to the honed shape at the LA Auto Show about a month later. Related Video: 2017 SUBARU IMPREZA TO DEBUT AT NEW YORK INTERNATIONAL AUTO SHOW ? Reveal on March 23, 2016 ? Completely redesigned for 2017 ? Sedan and 5-door to debut March 10, 2016 – Cherry Hill, N.J. – Subaru of America, Inc. announced today that the all-new 2017 Impreza will debut at the 2016 New York International Auto Show on March 23, 2016. The Impreza has been completely redesigned inside and out, from upgraded in-car technology and a more spacious interior to its sleek new body design. The updated model will include signature Subaru features such as Symmetrical All-Wheel Drive and award-winning safety technology. Both the sedan and 5-door model will be unveiled at the press conference scheduled for 12:20 p.m. ET on March 23, 2016 at the Subaru display following a speech by Fuji Heavy Industries president & CEO, Yasuyuki Yoshinaga. About Subaru of America, Inc. Subaru of America, Inc. is a wholly owned subsidiary of Fuji Heavy Industries Ltd. of Japan.

Lincoln Aviator returns, VW ponders pickups, and Subaru Forester endures

NEW YORK – Volkswagen is taking a hard look at a pickup truck, the Lincoln Aviator is back, and you love old Subarus (we'll explain). The New York Auto Show returned last week with flair and a wide range of promising reveals. Let's break down some of the big news, plus a few things you might have missed. News: Ford is fortifying Lincoln with the Aviator SUV Views: Doing a mid-size SUV is obvious. Calling it the Aviator wasn't. I like it. Using Navigator design cues, this thing looks the part and should give Lincoln some energy and sales volume. Not playing in the midsize SUV segment has been a mistake for Ford's luxury brand, and the Aviator should fill a much-needed hole. Props to Lincoln for dusting off the Aviator name, most recently used on a rebadged Ford Explorer built in 2003-2005. It sounds classy and historic, like something from 1930s, even though it only dates to the tail end of the " Friends" era. Speaking of names, when the MKC gets a new one, Lincoln should dust off Zephyr, a moniker it actually used in the '30s and then briefly in the early 2000s. Why use the Aviator name? Jim Farley, Ford's president of global markets, said it's about reminding consumers that Ford has traditionally built strong SUVs. "I think in a way the legacy is falling in love with what we do best," he said. "We wanted to go back to our roots. We know how to do this well." Farley also said the Aviator could prove to be Lincoln's bestseller. The Aviator was well-received in New York, earning our Best in Show award and garnering cautiously optimistic reactions from some analysts. "Lincoln ran this experiment once before ... differences in the market conditions, stronger differentiation and appetite for utility vehicles may prove a different story for this Aviator," IHS analyst Stephanie Brinley said. View 19 Photos News: VW surprised the car world with the Atlas Tanoak pickup concept Views: Good move. VW should build this. The concept is based on a longer version of the Atlas platform and would take aim at the midsize truck segment. VW is using this prototype to "gauge the reactions" of automotive influencers, but make no mistake, the Tanoak is totally doable. Using Atlas bones and mechanicals punched up with rugged styling and some soft-road capability, the Tanoak would grow VW's portfolio in a smart way. The Atlas Cross Sport concept, also revealed in New York, signals that Atlas expansion is already underway.