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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

Junkyard Gem: 1990 Geo Storm GSi

General Motors created the Geo division in 1989, to sell rebadged Suzukis, Toyotas, and Isuzus in the United States. Most of these cars were snoresville econoboxes, but two Geo models got high-performance upgrades and GSi badging: the Prizm GSi (aka Toyota Corolla GT-S) and the Storm GSi (aka Isuzu Impulse). We saw a discarded Prizm GSi in this series last year, and now it's the Storm GSi's turn, with this '90 in a Phoenix self-service yard. The Storm GSi had a DOHC four-cylinder Isuzu engine making 130 horsepower, which was excellent for a 1990 car weighing a mere 2,392 pounds. The 2,174-pound 1990 Honda CRX Si had a mere 108 horsepower (and two seats), and it cost $11,130 versus the Storm GSi's just-slightly-higher $11,650 price tag. Of course, Isuzus never developed quite the reputation for reliability enjoyed by Hondas. This Isuzu notched up an impressive final mileage figure, though. The Storm sold for just the 1990 through 1993 model years, and the GSi still has a devoted following to this day. The interior is straight-up late-1980s-style Japanese-econobox stuff, with plenty of tough gray plastic. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Not long ago, Toyota and Honda were the last word in the world of sporty imports. But that was just the calm... before the Storm. Featured Gallery Junked 1990 Geo Storm GSi View 12 Photos Auto News Isuzu Automotive History Performance geo

Junkyard Gem: 1980 Chevrolet LUV Mikado

During the 1970s and into the 1980s, each member of the Detroit Big Three imported Japanese small pickups and sold them with Ford (Mazda Proceed), Dodge/Plymouth (Mitsubishi Forte), or Chevrolet (Isuzu Faster) badges here. Ford developed the Ranger and killed the Courier for 1983 (though Americans could still buy the Mazda-badged version all the way through 1993), while The General axed the LUV after the S-10 debuted in the 1982 model year. Isuzu sold the same truck as the P'up through 1987, though, and we might as well follow up our recent P'up Junkyard Gem with its LUV predecessor. LUV stood for Light Utility Vehicle, and I've managed to spot a handful in the boneyards over the years. This one now resides in a yard in northeastern Colorado. The Mikado trim package included striped seat upholstery and a sporty steering wheel, plus these cool dash badges. As far as I can tell, no LUV Mikado advertising featured any Gilbert and Sullivan tunes. This one is fairly rusty for Front Range Colorado, and it has endured a bed swap from some other small truck. The engine is the 75-horse Isuzu 1.8-liter. Members of this engine family went into everything from Chevy Chevettes to Isuzu Troopers in the United States. Very unusually for a small pickup during the Malaise Era, this one has a luxurious automatic transmission. Acceleration must have been a leisurely affair in this truck. Air conditioning? Unheard of! Someone stuck every one of their lunchtime apple stickers on the driver's door. After 41 years of work, this truck is done. Come on strong in a LUV of your own!