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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 re-recalls 11k SUVs

General Motors is recalling a bunch of previously recalled SUVs because, well, they still aren't quite fixed. The latest repairs are necessary on 10,974 SUVs in North America, including 9,932 in only the US. Affected models include the 2006-2007 Buick Rainier, Chevrolet Trailblazer, and GMC Envoy; plus the 2006 Trailblazer EXT and Envoy XL. While not listed by NHTSA, a statement by GM to Autoblog says the 2006-2007 Saab 9-7X and Isuzu Ascender are also affected. In these SUVs, it's possible that liquid could get into the driver's door master power window switch module and cause a short circuit. This could potentially lead to a fire, and owners are urged to park the vehicles outside until repaired. GM has been trying to fix this issue for years. It started as an investigation into fires, and that led to a recall for about 250,000 vehicles in cold-weather states. A nationwide campaign came in 2013 for 193,000 of them in the US. Last year, the automaker decided to replace the whole module as a repair. However in a recent investigation of these recalls, GM discovered that this latest group of SUVs never received the new part. According to documents submitted to NHTSA (as a PDF), "Some dealers incorrectly used the labor code associated with module replacement when, instead of replacing the module, they only added a protective coating to the module." To fix things this time, the models finally get the correct component. Related Video: GM Statement General Motors is recalling 9,932 older midsize SUVs in the U.S. because they were mistakenly excluded from an earlier recall. Certain 2006 Chevrolet TrailBlazer EXT and GMC Envoy XL, and 2006-2007 TrailBlazer, Envoy, Buick Rainier, Saab 9-7X and Isuzu Ascender vehicles may continue to have a condition in which the printed circuit board inside the driver's door may corrode and short if exposed to certain fluids such as melted snow containing road salt. GM is aware of four fires but no crashes, injuries or fatalities associated with the expanded recall. The total number of vehicles being recalled, including Canada, Mexico and exports is 10.974. Customers are urged to park these vehicles outside until repairs have been made. GM reported this recall to the NHTSA on September 23.

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