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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

2014 Subaru WRX and STI pricing announced

As the sun prepares to set on the third-generation Subaru WRX, Subaru has released the pricing for the 2014 WRX and WRX STI. With redesigned versions of both cars due out next year, prices for the current car have risen by just $200 across the entire 2014 lineup resulting in new starting MSRPs of $25,995 for the WRX and $34,495 for the more powerful WRX STI (*not including destination).
The destination charge has also crept up for the 2014 WRX and WRX STI models climbing slightly from $770 to $795. A final pricing adjustment for this bodystyle's send-off year is that the optional navigation system went from $1,000 in 2013 up to $1,100 for 2014. Scroll down for the full model pricing breakdown, and keep a lookout for the all-new 2015 WRX and WRX STI, which we'd expect to see in production form in the coming months.
*Note: WRX STI (above) and WRX (below) are pictured here in the 2013 Special Edition trim.

2015 Subaru Impreza gets visual tweaks, added refinement

While our love for the Subaru Impreza is mostly reserved for its turbocharged WRX and STI models, there's still a fully competent, well-rounded package in the base model, now in its fourth generation. In order to keep it competitive, Subaru has given the Impreza a light refresh for the 2015 model year, and while the car hasn't changed much mechanically, there are a number of thoughtful updates in store for the revised model.
Most noticeably, the front end has been touched up, with a revised lower fascia that's a bit more aggressive than before, nicely incorporating foglamps on higher-end models. Around back, not much has changed, though there's a new lip spoiler on sedan models to improve aerodynamics. Inside, a new infotainment system is available, with a seven-inch color touchscreen, and Subaru's EyeSight driver assistance package can now be had on the Limited models. There's also an updated instrument cluster with an LCD color display, new door and shifter trim, a standard rearview camera, and a few tuning enhancements that allow for a quieter ride, according to Subaru's release.
Under the hood is the same 2.0-liter boxer four-cylinder engine as before, with 148 horsepower on tap, mated to either a five-speed manual or continuously variable transmission. Subaru notes that there's a quicker ratio for the electronic power-assisted steering (that's a good thing), and reminds us that the Impreza is still pretty fuel-efficient considering its standard all-wheel drive, able to achieve 28 miles per gallon in the city, 37 mpg highway and 31 mpg combined.