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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

2015 Subaru Outback wading into NY show fray

The current-generation Subaru Outback was never going to win any beauty contests with its blend of rugged SUV looks and station wagon design. Still, it's found lots of fans - even five years after its launch, the Outback was Subaru's second-highest selling model in 2013. With the reveal of the next-generation 2015 Legacy at the Chicago Auto Show, it should be no surprise that Car and Driver says Subaru will reveal the next Outback at the New York Auto Show in April.
If previous generations are any indication, the next Outback will likely borrow liberally from the new Legacy, including its platform and engines. In addition to its five-door, station wagon design, the Outback will almost assuredly feature added body cladding and a higher ride height than the Legacy. Subaru's big push with the new Legacy will be to improve interior quality and comfort with liquid-filled engine mounts, an acoustic glass windshield, increased sound deadening, new infotainment systems and new safety tech. All of these will probably appear in the Outback as well.
After its rumored New York reveal, the 2015 Outback is expected to go on sale around the same time as the new Legacy in the summer of 2014.

Why a production Mazda Koeru won't be a Subaru Outback clone

No automaker has had a hit quite like the Outback Many have entered, few have won. The Subaru Outback is one of those automotive bogeys that competitors seek to imitate but never quite capture. Mazda is poised to change that, its CEO tells Automotive News, with a production version of the Koeru concept. We're torn on whether this attempt will be the one to do it, whether the proposed model is truly aimed at the Outback, or whether it's just another pale imitation destined for failure. While the ingredients are pretty basic – wagon-like shape, extra cladding, a smidge more ground clearance than a regular car – no automaker has had a hit quite like the Outback. Reasons include packaging issues, poor brand fit, and Subaru's seemingly unstoppable momentum in building all-wheel-drive archetypes. That hasn't stopped a bunch of companies from trying. And now for a list: Ford attempted with the Freestyle/Taurus X; note that that model no longer exists, having been replaced de facto by the Flex and the newly crossover-ified Explorer. Audi discontinued the A4 Avant and slapped the Allroad badge and some fender flares on to capture the affluent outdoorsy crowd, initially selling well but now down 40 percent since last year. The humpback Honda (Accord) Crosstour and Toyota Venza could also be considered Outback-apers, as both short-lived models took sedan bodies and added a hatch and optional all-wheel drive. Dodge got into this space a few years back with the Journey Crossroad trim level, but fake brush guards and black wheels do not an Outback make. Volvo has perhaps come closest with the XC70, a not-quite-crossover that it nevertheless brands like its other crossovers. It helps that the Volvo die-hard and the repeat Subaru buyer aren't too different. Most of these models no longer exist, and the ones that do haven't sold as well as Subaru's Outback so far this year. Even if you're generous and add all 96,718 Journey sales (and not just those for the Crossroad, which FCA doesn't break out separately) to V70/XC70, Venza, and Crosstour, it still doesn't equal the 136,227 Outbacks Subaru pushed through November of 2015. And, as Automotive News points out, Mazda hasn't sold that many crossovers so far this year (the number is 129,932 thanks to huge CX-5 numbers). So why is Mazda considering going after the hallowed Outback? First off, we're not sure that it is because there's the question of what tiny niche this vehicle would occupy. "It's a totally new car.