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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: 1996 Isuzu Trooper

Though Americans had been buying the Isuzu-built Chevrolet LUV pickup since the 1972 model year (plus plenty of Isuzu-derived Chevettes and Chevette components later on), the first widely available Isuzu-badged vehicle available here was the LUV-sibling P'Up. That was the 1981 model year, and the I-Mark (Gemini) and Impulse (Piazza) soon followed. Later in the 1980s, GM (which owned a hefty chunk of Isuzu by that time) began selling Isuzu-built Spectrums and Storms with Chevrolet and/or Geo badges… but Isuzu started its United States business by selling trucks, and that's the only type of Isuzu you could buy new here when the company departed our shores in 2009. The Trooper SUV first went on sale here for the 1984 model year, and eventually the Trooper became the biggest-selling Isuzu in North America. Here's an example from the sales heyday of the middle 1990s, found in a Colorado self-service yard. In its homeland, this truck was known as the Bighorn. Elsewhere around the globe, however, it went by far too many names to list here (though Trooper was the most common). Highlights include the Holden Jackaroo and Caribe 442. Honda's desperation to cash in on the 1990s North American SUV craze led to the creation of an Acura-badged Trooper, known as the SLX and sold here from the 1996 through 1999 model years. As part of this arrangement between Isuzu, GM, and Honda, the Isuzu Rodeo became the Honda Passport here (confusing every North American who had ever bought a Passport-badged Honda Super Cub, which got that name so as not to run afoul of the builders of the Piper Super Cub aircraft) and Isuzu dealers sold Honda Odysseys with Oasis badges. Once we'd gotten a few years into our current century, the only Isuzu-badged vehicles you could buy new here (not counting commercial trucks) weren't even built by Isuzu at that point. One was the Ascender (a badge-engineered Chevy Trailblazer) and the other was the i-Series pickup (a badge-engineered Chevy Colorado). Oh, sure, a handful of Axioms and Rodeos slunk out of American Isuzu showrooms in the early years of the 2000s, but the clock really started ticking for Isuzu USA when the final Troopers showed up for 2002. When this truck was built, Isuzu was engaged in an eye-gouging, kidney-spearing price- and financing-deal war with Mitsubishi Motors and its Montero.

GM recalling 8.4M cars, 8.2M related to ignition problems

General Motors today announced a truly massive recall covering some 8.4 million vehicles in North America. Most significantly, 8.2 million examples of the affected vehicles are being called back due to "unintended ignition key rotation," though GM spokesperson Alan Adler tells Autoblog that this issue is not like the infamous Chevy Cobalt ignition switch fiasco.
For the sake of perspective, translated to US population, this total recall figure would equal a car for each resident of New Hampshire, Rhode Island, Montana, Delaware, South Dakota, Alaska, North Dakota, the District of Columbia, Vermont and Wyoming. Combined. Here's how it all breaks down:
7,610,862 vehicles in North America being recalled for unintended ignition key rotation. 6,805,679 are in the United States.