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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

2018 Subaru WRX and WRX STI pair updated looks with performance upgrades

For 2018, Subaru has given the WRX and WRX STI a mild refresh on the outside, and a few significant tweaks under the skin. Starting with the exterior, the lower grille openings on both models have been enlarged and given a bit of extra black trim for a more aggressive look. In fact, the change is a bit reminiscent of the dearly departed Mitsubishi Evo, with the black trim of the lower center grille extending to the bottom of the bumper. The WRX Limited and all STI models also get turning LED headlights, and the STI gets bigger 19-inch wheels. The interior also features subtle tweaks including a larger screen in the instrument panel for all models, as well as thicker door glass and foam in the windshield header to the make the car quieter. Both models also now come with roof rack mounting brackets, a new rear armrest with cupholders, and, according to Subaru, improved interior materials. And the WRX and STI are also now available with eight-way power adjustable Recaro seats. The Recaros are standard on the top trim STI, optional on the standard STI, and available in the new Performance Package for WRX models. This brings us to perhaps the biggest update, that aforementioned WRX Performance Package. In addition to the Recaro seats, it comes with upgraded brake pads covered in bright red calipers. The package also eliminates the moonroof, which hardcore enthusiasts know will save weight up high. The STI gets a notable brake upgrade. New Brembo brakes feature six-piston calipers at the front, and two-piston units at the back, and they're all painted a vivid yellow hue. Those calipers act on bigger, drilled rotors using equally enlarged brake pads. Subaru also retuned the car's Driver Controlled Center Differential (DCCD). Both the WRX and STI also have retuned suspension all around. If this all sounds great to you, you should be able to pick one up at your local Subaru dealer this spring. Related Video:

Subaru comes out on the right side of history, stands up against Indiana law

Well, I may as just get it out there straight up and let some percentage of you dear readers take your shots in the comments below: I find Indiana's new "religious freedom" law that opens the door to discrimination against gay people to be reprehensible, along with all the other laws across the country that do the same thing but with different wording. So I was thrilled today when Subaru, which has a plant in Lafayette, IN, came out and said it finds the new law pretty awful too. The statement, issued by Michael McHale, the company's director of corporate communications, says that while the company recognizes that each state gets to decide its own laws, the automaker does "not agree with any legislation that allows for discrimination, or any behavior or act that promotes any form of discrimination. Furthermore, we do not allow discrimination in our own operations, including operations in the state of Indiana." Although McHale told Autoblog Subaru is not considering leaving Indiana, the newly passed legislation has prompted others to say they want to take their business elsewhere. The NCAA said Monday it is taking a look at the law and trying to determine if it will be able to continue holding large sporting events in the state, according to ESPN. In a piece in The Washington Post, Apple's Tim Cook warned that these kinds of laws are being passed in dozens of states across the country and they are bad for business. He spotlighted one proposed law in Texas that would strip pension benefits from clerks who issue marriage licenses to gay people, even if the Supreme Court declares gay marriage legal. "Opposing discrimination takes courage," he wrote. "With the lives and dignity of so many people at stake, it's time for all of us to be courageous."