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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 recalls 48.5k Legacy, Outback models for steering defect

The Basics: Subaru is recalling 48,500 Legacy sedans and Outback CUVs from model years 2016 and 2017. The Problem: According to the NHTSA bulletin, the steering column in affected vehicles may not have been machined properly. This could cause the angle of the steering wheel to have no impact on the direction of travel – the wheel will turn and the car won't. Injuries/Deaths: Neither Subaru nor NHTSA have indicated whether there were any injuries or deaths associated with this recall. The fix: Subaru will inspect steering columns on the affected vehicles and replace them as necessary. Naturally, repairs will be done free of charge. If you own one: Subaru and NHTSA advise that owners do not drive their vehicles until they've been inspected. While Subaru is sending letters to owners, dealers will also reach out directly to schedule an on-sight inspection or arrange to have the vehicle towed to the dealership. More information: If repairs are necessary, Subaru will cover all costs associated with towing and provide affected consumers a free loaner.

2020 Subaru Legacy revealed with sublime interior, new platform

The completely redesigned 2020 Subaru Legacy just took the stage at the Chicago Auto Show, and it looks like a ... Subaru Legacy! We tease, because while Subaru has ever so subtly changed the metalwork everywhere you look, it's not obvious at first glance. Creases turn in slightly different directions, the fenders pop out just a bit more, and the wheels are different. To really see the difference, you should look at the cabin, underpinnings and mechanicals, where Subaru gave the seventh-generation Legacy a thorough overhaul. Subaru hasn't changed the Legacy's identity, but we're glad to report that this "all-new" Legacy represents a significant step forward for the model. The midsize sedan hops onto the Subaru Global Platform introduced a couple years ago with the Impreza. This structure is much more rigid than the 2019 model year car's platform, and also increases the use of ultra-high-tensile steel and structural adhesives. All this basically means that the new Legacy is stiffer, lighter and safer than the outgoing model — all good qualities to inherit. Both engine options are reasonably attractive for 2020. Subaru is ditching the 3.6-liter flat-six as the premium option and moving to its new 2.4-liter turbocharged boxer-four introduced in the Ascent SUV. It makes the same 260 horsepower and 277 pound-feet of torque here, good for 0-60 mph times of 6.1 seconds. Most buyers will end up with the standard 2.5-liter four-cylinder boxer, outputting 182 horsepower and 176 pound-feet of torque (0-60 mph in 8.4 seconds). This engine is also relatively new, as we got our first shot at it behind the wheel of the 2019 Forester. Both engines are predictably paired with Subaru's CVT. Your best fuel economy is achieved with the naturally aspirated four, rated at 27/35 mpg city/highway. You'll take a small hit with the turbo at 24/32 mpg city/highway. As the Legacy is still a Subaru, every version is equipped with all-wheel drive. A revised suspension design features a MacPherson strut setup in front and double-wishbone layout in rear. Subaru claims much higher dynamic performance and ride comfort with this suspension in combination with the new structure. We'll be the judge of that once we get behind the wheel, eventually. The interior is, in a word, impressive. We saw some hints of what Subaru is capable of with the Ascent's interior materials and design, but the highest-trim Legacy takes it to another level.