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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 WRX and STI meet at the dyno with interesting results

Road and Track recently put the 2015 Subaru WRX and the 2015 WRX STI through a battery of dyno tests to find out not only how much difference there is between their two engines, but what kind of differences there are. The WRX gets the company's new FA20 2.0-liter boxer four-cylinder engine with features like a twin-scroll turbocharger, direct injection and variable valve timing on its two cams. The WRX STI stands pat with the older EJ-Series motor, meaning a 2.5-liter boxer four-cylinder with port fuel injection and carryover turbo lag. Subaru pegs the $26,295 WRX at 268 horsepower, 258 pound-feet of torque and an "extremely conservative" 0-60 mile per hour time of 5.4 seconds. The $34,495 STI clocks in at 305 hp and 290 lb-ft with a 0-60 mph time of 5.1 seconds. Ok, fight.
R&T's dyno runs sussed power numbers at the wheel of 223 hp and 245 lb-ft for the WRX, 247 hp and 243 lb-ft for the STI, then went on to demonstrate in numbers what everyone knew: that the WRX consistently puts out more of its torque earlier than the STI and achieves full boost almost three seconds quicker. On the other hand, on the track, the STI was also shown to have a conservative official 0-60 mph time, stopping the timer at 4.8 seconds compared to the WRX's 5.2 seconds.
The mag says it has comprehensive results coming from its "complete battery of tests," but for now, you can scrutinize their dyno charts and let the battle continue about which one you'd rather put your money down for.

Subaru gunning for 500,000 US sales by 2015

For the last four years in a row, Subaru has experienced incredible sales growth including record sales of 336,441 units in 2012. This trend is all but guaranteed to continue this year with 281,652 on the books so far, but Automotive News is reporting the automaker has no plans of slowing down anytime soon.
The report says that Subaru is gunning for around 500,000 sales in the US by 2015, which doesn't seem like too far of a stretch considering 2013 sales totals are expected to top 400,000 units. Through August, Subaru's sales are up 29.3 percent compared to 2012, thanks to popular models like the Forester, Outback and, surprisingly, the WRX.
A new WRX is headed for an LA Auto Show reveal while an all-new Legacy is due out next year, and AN adds that Subaru is planning to significantly increase its media spending next year and start production of the Impreza sedan in the US in 2016.