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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

2016 Subaru WRX makes IIHS TSP+ fun

We write about boring, utilitarian compacts being named to the Insurance Institute for Highway Safety's Top Safety Pick+ list pretty regularly. Today, we've got yet another fun car to add to the tally – the Subaru WRX. Thanks to the inclusion of the company's impressive EyeSight active safety system, the WRX was able to score a "Superior" rating on IIHS' frontal crash prevention test, which is the highest score possible. Vehicles are required to score at least an "Advanced" rating to earn the TSP+ mark. In addition to the active safety system, TSP+ vehicles must also record "Good" ratings across the four basic crash tests – front, side, rear, and rollover – and a "Good" or "Acceptable" rating the small-overlap crash test. Of course, Subaru is no stranger to IIHS' biggest honor – the Legacy and Outback were named Top Safety Pick + vehicles in April 2014. We're still scouring the Internet for the actual crash test video from IIHS. Once we uncover it, we'll update this post. Until then, scroll down for the official press release from Subaru. 2016 Subaru WRX Awarded IIHS' Highest Standard of Safety "2015 TOP SAFETY PICK (TSP) +" ? "EyeSight" achieved the highest possible rating of "Superior" for front crash prevention. ? Seven models have earned 2015 safety awards from IIHS. Tokyo, September 14, 2015 - Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today announced that the Insurance Institute for Highway Safety (IIHS; a nonprofit organization supported by auto insurers in the US) has awarded the highest standard of safety, 2015 TOP SAFETY PICK+ (TSP+) along with the highest possible rating of "Superior" for front crash prevention to the 2016 Subaru WRX (US specs.), equipped with Subaru's EyeSight* driver assist technology. By adopting the EyeSight for 2016 model, WRX earned 6 of 6 points for front crash prevention. Including 2016 Subaru WRX, Subaru has seven models that have earned 2015 safety awards from IIHS - six with TOP SAFETY PICK+ and one with TOP SAFETY PICK. The EyeSight was the first system ever to use only stereo camera technology to detect the objects such as vehicles, pedestrians and cyclists. Since its Japanese debut in May 2008, features available on this system have been highly praised; they included pre-collision braking control and all-speed range adaptive cruise control tracking function.

Subaru teases all-new Legacy ahead of Chicago debut

Following the debut of the Legacy Concept at the 2013 Los Angeles Auto Show, it appears Subaru is now ready to show us the real thing. The Japanese automaker has just confirmed that a production-spec Legacy sedan will officially bow at next week's Chicago Auto Show.
All we have to work with right now is the teaser image you see above, as well as some general overview-type stuff from Subaru in regards to its new model. According to the company's press blast, the next Legacy "is a midsize sports sedan which offers enhanced driveability and functionality while achieving a design required for a flagship model with a quality feel." In other words, it's a brand-new Legacy.
The Legacy Concept was a decidedly attractive thing, combining coupe-like styling elements and a new design that sort of reminds us of a Buick Regal GS. Of course, Subaru has a storied history of creating excellent-looking concept cars, only to later unveil very watered-down production versions, so we fully expect its new midsize sedan to be quite a bit more boring than the show car we saw in LA. Let's hope we're wrong.