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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

GM recalling 250,000 SUVs over door electronics

After a door-fire investigation that dates back to February, the National Highway Traffic Safety Administration has officially announced a recall today that affects around 250,000 General Motors SUVs for a faulty driver's door module. The recall applies to the Buick Rainier, Chevrolet Trailblazer, GMC Envoy, Isuzu Ascender and Saab 9-7X from the 2006 and 2007 model years, as well as the 2006 Chevrolet Trailblazer EXT and GMC Envoy XL for vehicles sold and/or registered in the Snow Belt.
Road salt use in these midwestern and northern states can lead to corrosion of the driver's door module on these GMT360 and GMT370 vehicles, which allows water to come in contact with the circuit board. If shorted out, the vehicle's power door locks and power windows will not work, and could possibly lead to overheating and, in some circumstances, a fire. No official word on how many total vehicles caught on fire, but back in June, 28 fires had been reported to the government agency. A fix for the problem is still being worked out, but all affected vehicle owners will be notified by GM.
Scroll down for the official NHTSA statement.

Could this Isuzu Mysterious be an affordable 90s gem?

The Isuzu Rodeo holds a special place in rad car fans’ hearts, as it was the basis for another beloved off-roader, the original Honda Passport. The five-door Isuzu SUV lasted here for several years before being discontinued in the early 2000s, but the automaker sold funky two-door body styles in other markets, and one of the now-legal imports has made its way to Cars & Bids. Though our version had the somewhat mundane “Rodeo” title, the SUV was known as the “MU” or Mysterious Utility. This Japanese-market version comes with a 2.8-liter turbodiesel and a five-speed manual transmission. This one has around 121,000 miles and looks in decent shape. Interestingly, the two-door MU almost has a Mitsubishi Pajero Evo vibe, with its beefy fender flares and cropped, lifted body. Amazingly, the auctionÂ’s statement that the SUV is barely modified is accurate, as its only upgrades include a new stereo and those funky gold wheels. The Mysterious has drawn several comments, mainly from curious observers asking questions about a vehicle theyÂ’ve never seen. One wondered whether the MysteriousÂ’ top is removable, which unfortunately is not the case. Some versions, including the Isuzu Amigo, which we got, came with a removable soft top. One commenter noted that the tops donÂ’t age well, so the hardtop is likely the best choice for a 31-year-old imported SUV.   Though many JDM vehicles from this era are sometimes exceedingly difficult to import and equally expensive, the Mysterious sits at just $3,500 halfway through its auction. ItÂ’s got all the hallmarks to be a Radwood-ready bargain, too. The bright red paint and gold accents give it just enough flash, and versions of the diesel engine are still in production in China, so it might be somewhat reasonable to find parts. Related Video Isuzu Auctions Used Car Buying SUV