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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

Which sinister Scion FR-S would you buy?

Look beyond the utility. Look beyond the amenities, the infotainment, the hidden storage cubbies, and the 72-way adjustable seats. Yes, even the seats. Outside all the fluff of today's cars, there's a blank canvas waiting for an artist; cars can really come alive with a few tastefully placed modifications. These two Scion FR-S sports cars surely fall into that category, and when they both turned up on eBay, we figured we'd ask the question — which would you rather buy? The track-centric red car or the brutally simple black car ? Internet, you be the judge. The "widebody" look — with its outrageous fender flares and visible rivets—isn't for everyone, but this 2013 Scion FR-S happens to pull it off quite well. According to the listing, the pumped-up fenders, splitter, and additional aero bits are courtesy of legendary widebody purveyor Rocket Bunny. Overall, the racy body mods add a significant twinge of aggression to the once docile FR-S... a notion that's echoed underneath the hood. The heady Scion FR-S leverages an HKS supercharger system and exhaust, paired with a set of Buddy Club racing coilover shocks, Bee-R wheels wrapped in Yokohama ADVAN rubber, and a new engine management system. All in all, this looks to be one fierce track and street monster. RELATED: Check Out This Wild Toyota GT86 Wagon Concept But whereas the red car is a shout, the black car is a growl. Confident, powerful, yet restrained. The black 2013 Scion FR-S sports a sultry Varis Arising 2 body kit with carbon fiber accents lining its front lip and boot lid, as well as a brilliant set of projector headlights and Tom's taillights. The icing on the cake is the set of Work M1R gunmetal grey wheels, which come fitted with Michelin Pilot Super Sport tires. There's no supercharger in play here, but the Scion's 2.0-liter boxer engine does breathe a bit easer thanks new ceramic coated exhaust headers and a high-flow catalytic converter. It can also handle a bit better too, courtesy of sporty Cusco Street Zero 3 coilover shocks. If we're honest, both are quite jaw-dropping in their own unique styles. But which do you prefer? Related Video: This article by Zach Doell originally appeared on Boldride.com.

Union to launch Toyota organization drive in Canada

Toyota may be heading toward some labor issues in the Great White North, as employees at a pair of Canadian Toyota factories may be set for a certification vote. The Unifor union, which was the result of a merger last year between the Canadian Auto Workers and the Communications, Energy and Paperworkers union, will be holding the vote.
Over 40 percent of the employees at the Woodstock and Cambridge, Ontario factories have signed union cards, cresting the minimum percentage required to instigate a legal certification vote, according to Reuters. The Woodstock factory is responsible for RAV4 production, while Cambridge builds the Lexus RX350 and RX450h, as well as the Toyota Corolla. The two factories employ nearly 7,000 people.
It's unclear when the union will hold a certification vote at the two factories, but what is rather clear are the worker complaints. Employees are concerned about workers being hired on temporary contracts which lack the benefits of full employment, John Aman, head of organizing for Unifor, told Reuters.