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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 nixes plans for US-built XV Crosstrek

Subaru is on a sales tear, with numbers up 21 percent through the end of November compared to last year. It's been investing in its Indiana factory, and having ended its contract to build the Toyota Camry there, the 400,000-unit capacity was once seen as more than Subaru needs. At some point Subaru had plans to build the XV Crosstrek here in the US, but Reuters reports that the company has changed its mind and will build the little crossover Scooby in Japan, in the same Gunma Prefecture factory where the Impreza, BRZ and Levorg are built. The report cites "the relatively high sales price," the weakening yen versus the dollar and capacity constraints at the Indiana facility. For a planned production run of 65,000 Crosstrek units annually, the new math – especially the yen valuation, which has declined against the dollar to a rate not seen since 2007 – makes Japanese production a viable option. Subaru isn't the only manufacturer taking its toys back home, either: the Reuters report says Toyota is considering shifting some Camry production back to Nippon, while Nissan plans to do the same with the Rogue. Our guess is that if Subaru sales continue the trend they've been on for years, the assembly decision will give them more local flexibility here for addressing it. Featured Gallery 2014 Subaru XV Crosstrek Hybrid: First Drive View 53 Photos News Source: ReutersImage Credit: Copyright 2014 AOL Plants/Manufacturing Subaru Crossover subaru xv crosstrek

Watch a Subaru BRZ nail world-record tightest 360 spin

How much space do you need to execute a full 360? Less than two car lengths, as it turns out. But you'd need to be someone like Alastair Moffatt to pull it off. The British stunt driver added another Guinness-certified world record at the Autosport International show in Birmingham, England, the other day when he executed a complete 360-degree turn in just 21.3 feet. 14 of those feet were taken by the Subaru BRZ he drove to accomplish the feat – naturally with the ABS and traction control disengaged. That left just 7.4 feet (2.25 meters) of clearance to flip the car all the way around, which bagged him the record for the world's tightest 360-degree spin that previously stood at 8.2 feet (2.5 meters). He didn't manage the feat just once: after extensive practicing, Moffatt performed the stunt in front of a cheering crowd, and then repeated it under tightly controlled conditions for the record adjudicators. This isn't the first such world-record stunt that Moffatt has pulled off, either. He previously scored the records for the tightest parallel parking job and for the same in reverse. Watch him accomplish his latest in the video above. SUBARU BRZ GETS IN A SPIN FOR GUINNESS WORLD RECORD - Rear-wheel drive Subaru BRZ sets new world record for tightest 360° spin - Stunt driver Alastair Moffatt secures record at 2016 Autosport Show Subaru has again demonstrated the agility and precision handling prowess of its rear-wheel drive BRZ sportscar by securing the Guinness World Record for the 'Tightest 360° spin'. The record was secured at the Autosport International Show over the weekend, with the BRZ in capable hands of former world record holder Alastair Moffat. Stunt-driver ace Alastair Moffatt broke the previous 2.5-metre Guinness World Record, which was achieved in 2014, by flicking the BRZ into a 360° spin between two obstacles in Autosport International's Live Action Arena. Moffatt has previous experience setting daring Guinness World Records, including 'Tightest Reverse Parallel Park' and 'Tightest Parallel Park', the latter established at the 2015 Autosport show. The 4.24-metre-long Subaru BRZ is renowned for its low centre of gravity – lower than many high-end supercars – and naturally-aspirated 2.0-litre 'Boxer' engine, making the BRZ one of the most exciting and engaging cars on the road In order for Alastair to have maximise control over the car throughout the manoeuvre, the traction control was switched off and ABS disengaged.