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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-Isuzu joint venture assembles 1.5-millionth Duramax diesel

General Motors and Isuzu have officially stitched together 1.5 million Duramax 6.6-liter diesel engines. The joint venture between the two manufacturers started in 1998, and now the DMAX plant employs 517 workers in a 584,000 square-foot facility. GM introduced the Duramax turbo diesel engine to the US market for the 2001 model year, and it can be found trucks like the Chevrolet Silverado HD and GMC Sierra HD as well as the full-size Chevrolet Express and GMC Savana vans. In its current configuration, the engine yields 397 horsepower and 765 pound-feet of torque at just 1,600 rpm.
Of course, the big oil burner has plenty of tuning potential as well. As you may recall, a Duramax-powered truck recently set the land speed record for towing a vehicle at 142 miles per hour.
GM owns 60 percent of the joint venture, with Isuzu laying claim to the remaining 40 percent. The facility is located in Chicago. You can take a look at the brief press release below for more information on the milestone.

Junkyard Gem: 1992 Geo Storm

GM's Geo brand existed from the 1989 through 1997 model years. While mostly remembered today for the Suzuki Cultus-based Metro (which continued to be sold with Chevrolet badging until 2001), there were also Geo Prizms (California-built Toyota Corollas), Geo Spectrums (Isuzu I-Mark), Geo Trackers (Suzuki Sidekick), and Geo Storms (Isuzu Impulse). Storms are very rare now, but I found this one in Colorado last week. The idea of the Geo brand was that it would lure young car buyers in a way that wouldn't be possible with stodgy brands such as Oldsmobile or Buick. While GM never sold as many Geos as hoped, enough hit American roads that they were pretty numerous for a while. 1980s-style pink-and-blue graphics remained relevant into the early 1990s. I'm not sure if these pink decal stripes were done at the factory, at a dealership, or later on in someone's back yard. The Storm GSi was the factory-hot-rod version, but this is an ordinary Storm with the 95-horsepower, 12-valve engine. Automatic transmission, of course. It never made it to 100,000 miles. The car seems to be in good shape, so perhaps something broke at about age 10 and it sat in a garage for the next 15 years. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This ad, like the Storm, was very much of its time. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. GM emphasized the Japanese origins of the Storm. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. In Japan, this car was sold as the Yanase-Isuzu PA Nero, a catchy name for a "Nice Day Fair." Featured Gallery Junked 1992 Geo Storm View 16 Photos Auto News Isuzu