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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

Incentives aid smooth Suzuki wind down

American Suzuki is continuing to offer buyers substantial incentives even as the company winds down operations. Those looking to nab a new Suzuki vehicle will find rebates of between $500 and $2,000 and zero-percent financing for up to 72 months as dealers look to liquidate inventory following the automaker's filing for Chapter 11 bankruptcy protection last month. The strategy is working so far. Last month saw Suzuki sell a total of 2,224 vehicles, up 22 percent compared to the same time period in 2011. The Japanese manufacturer says it will continue the incentives through December.
Suzuki had around 5,000 units in dealer inventory in the US when it went into bankruptcy protection, with an additional 1,500-1,700 vehicles headed to dealers at that time. The company says it will continue to honor warranties moving forward using its current dealer network. Most of the dealerships will become Suzuki service and parts stores after American Suzuki shutters car sales in the US.

The Suzuki Jimny is even more awesome with these retro graphics

We already were pretty smitten by the Suzuki Jimny, the pint-sized 4x4 that, sadly, U.S. buyers can only look on from afar. It manages to remind us of its ancestors, the Suzuki Samari and Sidekick (small and basic 4x4s for which collectors and off-roaders are rapidly developing a keen appreciation). At the same time, it also rocks its own modern, mini-G-Wagen vibe. Now Suzuki has rolled out a batch of available decal packages for the Jimny, and we're digging it all the more. As surfaced by Motor1, Suzuki's catalog of accessories for the Jimny includes graphics packages in several different themes. The Offroad style includes tri-color red/gray/black stripes for the top and sides of the hood and under the rear side windows. The wide, lower-body REAL OFFROAD graphic is in red and black, while the finishing touch is a rhino decal for just above the Jimny badge on the tailgate. The Survival style appears to be some kind of camo pattern in black that is applied in a wide band along the upper bodysides. Heritage style ups the retro factor. It features red and gray upper body stripes on a white Jimny. Full the full look, you'll want the hard-shell exterior spare-wheel cover with matching graphics and the red mud flaps. The piece-de-resistance is the Revival style, which embraces the rad Eighties with a white/pink/black zig-zag squiggle on the doors and rear fenders that could have been lifted straight from a Samari. The matching hard-shell spare-wheel cover is a must. All of these prove yet again that the boxy, basic Jimny makes an ideal canvas for customization, and there are plenty more accessory items in that catalog. But we're not going to torture ourselves any further. Featured Gallery Suzuki Jimny decals and accessories Design/Style Suzuki SUV Off-Road Vehicles