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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

Watch Higgins' mind-blowing Subaru WRX STI Isle of Man record lap in first-person

Have you gotten sick of Subaru and the Isle of Man? Good, we'd hope not, because of all the videos we've posted so far, today's is the crown jewel. In-car, around the notoriously treacherous race track, with commentary from David Higgins himself.
It gets better, though. Overlaid with the video is the same biometric data that we showed you last week. The result is a heart-pumping, 22-minute video of the record-breaking sprint around the entirety of the Isle of Man TT circuit at a truly wild pace. Higgins commentary, meanwhile, simply adds to the experience of hurtling across the landscape. Subaru has also put together a second video, highlighting the WRX STI that was used in the lap.
You can view both of those videos, as well as a short press release from Subaru, below. Scroll down and take a look.

The next Subaru three-row will be the biggest Subaru ever

Subaru's trying to fix what hobbled the too-small, too-odd Tribeca, the company's last attempt at a three-row SUV, with a truly American-sized vehicle that will resemble the Viziv-7 Concept the company showed off at the LA Auto Show. We caught up with Dominick Infante, National Manager of Product Communications, to get the story about what that future SUV will be like. While he couldn't talk about engines ("[W]e'll have big news on that coming up," he said), Infante told us that the production SUV would be based on the new global architecture, a version of which underpins the new Impreza. That car, and its architecture, were "designed to meet crash testing out to 2025, so it's very overbuilt which is why we can go to something as large as this," Infante said. It's also coming soon. Infante told us that the production version be on the road in 2018, which we assume means it'll be a 2019 model year vehicle. Don't expect it to diverge from the company's general styling themes, either. Infante mentioned that the Tribeca, "was a very stylized vehicle ... [it] kind of didn't fit with the brand." We'd say that's an accurate assessment of a vehicle that always stood apart from the rest of the lineup. Subaru will play it safe to avoid that problem, making sure the production version of the Viziv-7 will be immediately identifiable as a Subaru. As Infante put it, "It's not going to be overly fancy or pretty; it'll be rough and tumble. We're going to stick with our Subaru DNA." And it'll also fix the Tribeca's other problem, which was size, particularly in the third row. Infante promised us that adults would fit in the Viziv-7's rear seats, although a quick glance in the Concept didn't confirm this because there wasn't an interior at all. So we'll have to wait and see, and note that there was no discussion of the size of those adults. Infante also promised configurable seating and cargo arrangements that would go beyond anything Subaru's done before – and since Subaru's only done one proper three-row, that means the Tribeca. Since it's debuting in 2018, it's a safe bet we'll see a concept that's much closer to production form next year. Stay tuned.Related Video: