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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

Next-generation Toyota 86 and Subaru BRZ confirmed

Toyota and Subaru jointly announced today that they would be continuing and expanding their alliance. Toyota will be taking a larger stake in Subaru, bringing the total to 20%, and Subaru will respond in kind by buying shares equal to the value of those purchased by Toyota. In terms of product, the two companies will reportedly swap knowledge in the development of all-wheel-drive systems, battery-electric powertrains and connected/autonomous driving technologies. Oh, and there will be a next-generation Toyota 86 and Subaru BRZ. Despite less-than-stellar sales, the two companies confirmed that the rear-wheel-drive Toyabaru twins will be returning for a sequel. No details about them were provided, but a second-generation has widely been speculated and reported, with Australia's Motor quoting Supra chief engineer Tatsuya Tada confirming as such. "We have a new 86 team," he told Motor. "We have to make a new 86 that surpasses the Supra ... that is what the customer expects." Beyond that, there is rampant speculation of where the rear-drive platform will originate (a derivative of Toyota's TNGA platform, something boosted from Mazda, aliens), as well as what might find its way under the hood (virtually anything would be better than what's there now). A Japanese publication even suggested it might even be previewed next month at the Tokyo Motor Show.  In any event, expect the next-generation Subaru BRZ and Toyota 86 to be a continuous source of interest for the next few years.  Subaru Toyota Coupe Future Vehicles Performance

Subaru XV Crosstrek gets special edition model, retina-searing paint

It's not going to be hard to spot the buyers of the upcoming 2015 Subaru XV Crosstrek Special Edition driving around town thanks to the model's exclusive, blazing Sunrise Yellow paint. But you can think of the loud color as Subaru's way of celebrating a record year in 2014 with 513,693 vehicles sold, easily beating its half-million-car goal. The Crosstrek was also the company's third-best-selling vehicle last year, behind the Forester and Outback. Limited to 1,000 units that begin arriving in the spring, the Special Edition is priced at $25,290, plus $850 destination and delivery. For that money, Subaru gives buyers a compact crossover based on the 2.0i Premium with some extra kit. In addition to the sunny paint, all of these models come with a power moonroof, body-color folding mirrors and blackened headlight bezels. The all-weather package is also standard with heated exterior mirrors, a windshield wiper de-icer and heated front seats. The biggest upgrade inside is Subaru's Starlink multimedia system that includes a seven-inch touchscreen with voice-activated controls, multi-touch support and two USB ports. Keyless access with push-button start and leather wrapping for the shift lever and steering wheel also come with this version. There's nothing new underneath the bright paint and improved interior, though. The Special Editions get the same 2.0-liter boxer four-cylinder engine making 148 horsepower and 145 pound-feet of torque as the rest of the lineup. As expected, power is routed through a CVT to Subie's all-wheel drive system. Read more below about Subaru's limited take on the Crosstrek. SUBARU ANNOUNCES XV CROSSTREK SPECIAL EDITION - Limited edition production model with 1,000 units - Based on 2.0i Premium trim - New exterior color Sunrise Yellow - Priced at $25,290 Cherry Hill, N.J. - Subaru of America, Inc., which has posted record-breaking sales every year for the past six years, today announced the introduction of the 2015 XV Crosstrek Special Edition. The Special Edition will be limited production of 1,000 models arriving into retailers in Spring 2015. Based on the well-equipped 2.0i Premium trim, the Special Edition is priced at $25,290 (plus $850 d&d). The versatile, fun-to-drive XV Crosstrek combines bold five-door design, a highly capable chassis, best-in-class fuel economy and in-demand multimedia features.