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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 planning modular platform, seven-seat SUV, plug-in hybrid

Fiat Chrysler Automobiles isn't the only big name in the auto industry releasing details on its future plans. Subaru, and its parent company Fuji Heavy Industries, is aiming to bump its North American sales up from 478,000 to 600,000 by 2020. Now, that seems pretty reasonable, especially in the face of FCA's hugely ambitious goals for Alfa Romeo and Maserati. It's how Subaru will go about increasing the sales, though, that has us intrigued.
A focus on more fuel-efficient, direct-injection engines will complement a new platform, while the company is contemplating expanding capacity at its Indiana factory, which will now have more room since Toyota Camry production will be ending there.
As for that new platform, it's called the Subaru Global Platform. Original, we know. It's a modular deal and will eventually underpin a vast range of future Subies following its debut in 2016. The new platform may also end up underpinning a seven-seat SUV, which would serve as the successor to the Tribeca and debut between 2016 and 2020, according to Automotive News.

Subaru offers glimpse of Viziv 2 Geneva concept

Subaru clearly sees something special in its Viziv crossover concept. After debuting it at last year's Geneva Motor Show and evolving it for the Tokyo Motor Show, the Japanese brand is bringing a Viziv 2 concept to this year's Geneva show on March 4. It also has a few other cards up its Swiss sleeve, too, as it has plans to display its new WRX STI road car and racecar for the Nürburgring 24 Hours this summer.
The third iteration of the Viziv gets reshaped boomerang headlights and new LED foglights, but that's all we know for the moment, because Subaru has only released a single teaser rendering along with a tantalizing claim that the showcar "signifies a future path" for the brand's next models.
The powertrain for the Viziv 2 is also still a secret. Both previous concepts used three-motor hybrid systems matched to continuously variable transmissions. In the first concept, primary power came from a diesel engine, while gasoline power was said to motivate the second evolution in Tokyo.