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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

New Subaru Impreza coming for 2017, previewed by this concept

There's a new Subaru Impreza coming in late 2016, as a 2017 model. And while we don't know any specifics about Fuji Heavy's new compact, we know it'll look something like the concept seen here. Simply called the Impreza 5-Door Concept, this slick hatch makes its debut at the 2015 Tokyo Motor Show, and we're crossing our fingers that the next-generation production car shares a lot of this hatchback's design. Subaru says this concept hints at "the design direction not only of the new Impreza but of Subaru's future models as a whole." That's easy to see – the fascia wears an more heavily sculpted version of the brand's current design language. Slim taillights accent a petite rump, though we'll of course be interested to see how this design language translates to a four-door Impreza sedan, as well. That said, Subaru sort of has a habit of letting us down in the transition from showcar to production model. This is one company that creates gorgeous concepts, but then the final designs often leave us feeling a little flat. We'll have to wait until next year to know if that's the case with this slick new Impreza. For now, fingers crossed. Subaru "Impreza 5-Door Concept" Makes World Debut at Tokyo Motor Show 2015 Tokyo, October 28, 2015 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today unveiled the "Impreza 5-Door Concept" at the 44th Tokyo Motor Show 2015. The Impreza 5-Door Concept is a design concept car previewing the next-generation Impreza which is to be the first one of Subaru's next-generation strategic vehicles envisioned in FHI's Mid-Term Management Vision "Prominence 2020? announced in May 2014. While positioned as an entry model in the Subaru lineup, its compact body features a blend of bold expressions of Subaru's Dynamic & Solid design elements and a quality feel beyond its class – hinting at the design direction not only of the new Impreza but of Subaru's future models as a whole. Main Features of Impreza 5-Door Concept The front, sides, and rear are seamlessly joined in the Dynamic & Solid surface structure, creating a three-dimensional and solid body that is a feature of Subaru styling. The dynamism is enhanced by well-placed character lines on the 5-door style compact body shape. The design expression of "Enjoyment and Peace of Mind", the value that Subaru provides to its customers, is fully pursued within the limits of the C-segment body size.

Drive looks at a pair of STI-ified Subaru Impreza RS Coupes

Among tuners, the legions of Subaru fans are hard to top, displaying all the fanaticism of English soccer fans and a dedication to their vehicles that borders on obsessive. These are compliments, by the way. In the latest video from Drive, Matt Farah takes a look at a pair of very special Imprezas - early Impreza 2.5RS Coupes that have had some serious heart transplants.
The first, a traditional blue model, sports the 2.5-liter, turbocharged flat-four from the 2004 WRX STI, which is good for around 300 horsepower. The other Impreza is a bit more hardcore - the engine is a 2.0-liter, turbocharged four-cylinder from the JDM WRX STI, which we suppose makes it more of an Impreza 2.0RS Coupe. Besides the different engines, both cars represent the unique ideas and style of their owners.
The 10-minute video explores this, digging into why people tune, and how it's a reflection of their own personal driving style and character. Take a look below for another fun vid from the team at Drive.