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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

Subaru uses a mime and a toy car to explain why it loves the boxer engine

I will freely admit to struggling with why Subaru continues to stubbornly employ a boxer engine design while so few other automakers do the same. After all, with twice the number of cylinder heads and cams as a traditional inline four-cylinder engine, a boxer four is more complex, more expensive to manufacture and more cumbersome to service with few tangible benefits. Until recently, the company's engines struggled to meet the fuel economy numbers of its competitors while offering no real boon in horsepower or torque. Subaru seems to recognize I'm not the only one scratching my head.
In order to help us non-believers understand what's what, the company has employed a pair of mimes, a toy car and a few clay engines to demonstrate the folly of every other automaker on the planet. Subaru says the boxer offers up a lower center of gravity than either an inline four-cylinder engine or a V6, which I will gladly concede. The company also says the design offers up smoother operation.
I'll offer just two counterpoints here. First, an engine with a low center of gravity is excellent, but when vehicles like the Forester, XV Crosstrek and Outback boast more ground clearance than most mainstream SUVs, that argument flies out the window. Second, anyone who's spent any amount of time behind the wheel of a vehicle equipped with an inline four and then proceeded to move into one propelled by a boxer can tell you the latter has all of the idling manners of a small tractor. Check out the video below to see for yourself.

Subaru readies BRZ RA Racing for Japanese trackdays

As if we needed any more reasons to take a Subaru BRZ to the track, Subaru has just announced that it will be producing a racing-spec version of the car straight from the assembly line. The only problem is that the BRZ RA Racing is being offered for the Japanese domestic market only, and won't be visiting any road courses in the US any time soon.
To get the BRZ ready for some serious track time, Subaru added brake ducts beneath the front fascia, removable tow hooks and an oil cooler behind the grille. Inside, the car gets a factory six-point roll cage (including custom-fit floor mats) and a four-point race harness for the driver. Now we get to pricing where US enthusiasts will get even more miffed. The entire suite of racing add-ons increases the BRZ's price by 31,500 yen, which converts to less than $350 US; the total price of the car converts to right around $31,500 US.
There is a brief press release posted below, which has been translated (somewhat poorly) by Google.