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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 Outback to show fresh new face in New York

The refreshed and facelifted 2018 Subaru Outback was revealed today, just ahead of its debut next week at the 2017 New York Auto Show. While not all new, the Outback gets a more aggressive appearance, improved ride and handling, and some new standard and optional equipment. Pricing hasn't been announced, but the 2018 Outback will go on sale sometime later this year. While there haven't been many changes to the overall body, the Outback's front and rear fascias have been updated to fall in line with the rest of Subaru's lineup. The C-shaped headlights and wide grille recall the new 2018 Subaru Crosstrek. According to Subaru, the shape is supposed to remind you of the boxer engine design, with the lights moving outward from the grille. The LED headlights are available with a feature that points them in the direction of the steering wheel. Limited and Touring models come with automatic high beams courtesy of Subaru's EyeSight safety suite. New cladding on the front is intended to better protect the body from dirt and rocks when soft-roading. There will be new wheel designs across the entire Outback range. 2.5i base and Premium models come with 17-inch wheels, while Limited and Touring models come with 18-inch wheels. All models except the range-topping Touring come with roof rails with retractable crossbars. The Touring comes with low-profile rails and detachable crossbars. Subaru claims improvements to the Outback's chassis and suspension provide a smoother, quieter ride than the current model. The brakes and the electronic power steering have also been retuned for a more linear response. Improvements to the CVT, the door mirrors, side glass, and wheel wells should help quell some road noise. There have been upgrades to the interior, including a redesigned center console. Backseat passengers now have access to two USB ports. New materials and colors will be available for both the seating surfaces and trim pieces. Subaru also says an improved air conditioning system will cool the cabin more quickly than before. The 2018 Outback gets the latest version of Subaru's Starlink infotainment system. That means Bluetooth phone and audio, Apple CarPlay, Android Auto, and a TomTom navigation system with three years of map updates in the top level models. The standard touchscreen is 6.5 inches, while an 8-inch system is an available option. Premium, Limited, and Touring models get over-the-air WiFi updates.

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."