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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

Future Classic | 1990-1993 Geo Storm and Isuzu Impulse

You don't see a lot of Geo-branded cars on the road these days, despite the fact that the General Motors' captive-import brand was actually pretty successful for around a decade. Perhaps the most recognizable vehicle to roll into Geo showrooms was the Prizm, which basically amounted to a rebadged Toyota Corolla built in California (which means General Motors was competing against its own Chevy Cavalier in the compact sedan market). And then there were the Geo Metro sub-compact, known for years as the most fuel-efficient vehicle you could buy in the United States, and the spunky Geo Tracker SUV that carried on for several years wearing Chevrolet badges after Geo's demise. Those are all interesting vehicles, but for this article we're going to focus in on the sporty Storm model. Like the other Geo vehicles, the Storm was sort of a joint venture, in this case with Isuzu, the Japanese automaker best known for making SUVs and big commercial trucks. Back in the day, though, Isuzu had some legitimately intriguing little cars in its showrooms. The Storm was based heavily on the second-generation Isuzu Impulse (known as the Piazza in other markets). And, well, you see even fewer Isuzus on the road these days than Geos. MotorWeek | Retro Review: '90 Geo Storm GSi Why are the Geo Storm and Isuzu Impulse future classics? They may never actually be "classics" in the same way a Ford Mustang or Chevy Camaro may be, but they are still interesting cars. And for potential buyers of a certain age, memories of gawking at sleek-looking Geo Storms everywhere you looked mean the nostalgia factor is high. If nothing else, we're pretty sure a nicely kept Storm or Impulse would draw a certain crowd at a local car show. While the Storm was way more popular with American buyers in the 1990s, the rarity of the Impulse means it's probably the more desirable option if future collectibility is a factor. What is the ideal example of the Geo Storm or Isuzu Impulse? The most valuable version of the duo is surely the rare Isuzu Impulse RS (the silver car above) with all-wheel drive and a turbocharged 1.6-liter four-cylinder engine that spun out 160 horsepower and 150 pound-feet of torque. According to reports, only about 600 of these machines were sold in the States — complete with "Handling by Lotus" badging (General Motors held sizable stakes in both brands at the time) — which means they aren't very easy to find for sale.

Porsche revives Pink Pig and Rothman's liveries for Le Mans

Long-time fans of Porsche, particularly its motorsports history, are in for a treat at this year's 24 Hours of Le Mans. The company took two of its 911 RSR race cars and gave each of them a famous color scheme from the past. The designs are part of the company's 70th anniversary celebration. The first and most unusual paint scheme is a modern rendition of the "Pink Pig." The design was used on a Porsche 917/20 in 1971. Just like the original, it's finished in a pale shade of pink with dotted lines marking out sections of the car. Each of these sections has a label for a different cut of meat from a pig. The other livery isn't as strange, but it's no less recognizable. It features a blue, red and gold color scheme of tobacco company Rothmans. Rothmans was a sponsor of many racing Porsches over the years, and the colors appeared on everything from Le Mans racers to the Paris-Dakar 959. This version on the 911 RSR notably lacks any tobacco branding or advertising. The two 911s with the retro colors will be competing alongside 8 additional 911s with more modern liveries. They will compete in the GTE classes at the 24 Hours of Le Mans. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.