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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

Bug-eyed next-gen Nissan Titan spied testing

It's no secret that the fullsize pickup truck market is dominated by offerings from Detroit's Big Three automakers, the Nissan Titan and Toyota Tundra not able to outdo the Ford F-150, Ram 1500 or Chevy Silverado/GMC Sierra twins. A great deal of that has to do with the fact that, while the American trucks have all undergone evolutionary updates that include a range of body styles, fuel-efficient engines and excellent technology, the Japanese offerings are, well, really old. Toyota is offering an updated Tundra for the 2014 model year, and while we haven't driven it yet, we're already betting that it's still behind the pack in terms of competitiveness - the 2013 model placed fifth out of sixth in a recent PickupTrucks.com comparison test.
At the bottom of the pack lies the Nissan Titan, a truck that hasn't received any sort of substantial update since its introduction nearly ten years ago. But that's going to change - a new truck is slated to debut for the 2015 model year, and these spy shots of a Titan mule clearly show that things are moving forward.
While this tester relies heavily on the current truck's bodywork for testing purposes, the new Titan will have a revised design, some of which is evidenced by the bug-eyed front fascia of this mule. No, the production model isn't going to look all weird (we hope), but the higher, more outboard headlight placement suggests that the new truck will be a bit wider than the current model.

Nissan to make 85% of the vehicles it sells here in US

We could be in for a big push from Nissan in the manufacturing realm if Vice President of US Sales and Marketing Fred Diaz has anything to say about it. Speaking to the Automotive Press Association recently, Diaz (above) expressed a desire to build some 85 percent of the vehicles Nissan sells to Americans in the US, claiming it will happen "in the very near future." Nissan has already moved to increase exports of its US-built products, and in 2013, it built just over 76 percent of the models it sold in this market within our country's borders.
"Any issues of us taking advantage of the value of the yen, we want to dispel that," Diaz told reporters, pointing out the contentious issue of currency manipulation. There's also the obvious goal of positive PR - Americans like things made in America, and they like companies that invest in America. Diaz is quick to point out that Nissan had done just that: "While a lot of people retrenched [during the recession], instead we leaned into it and we continued investing and in fact made over $5 billion in investments, bringing a lot of production from Japan to the United States and to Mexico," Diaz said, pointing out that Nissan has helped create 8,000 jobs through its investments.
Nissan runs three factories in the US, two in Tennessee and one in Mississippi. Between the three, production is up 22 percent, while the overall exports from the facilities have increased by 100,000 units, Diaz told reporters.