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Subaru mulls motorsports return, nixes small CUV plans

The Subaru WRX STI breaking the automotive lap record at the Isle of Man might be just the beginning of the headlines trumpeting a Subaru racecar. According to the latest rumors, the Japanese brand is looking at taking motorsports more seriously in the future. That could possibly even mean endurance racing at Le Mans.
According to Auto Express, the brand is mulling a greater participation in motorsport, but the big question is where. The World Rally Championship isn't a certainty because it now favors smaller cars like the Volkswagen Polo. Subaru still competes in series like Rally America and Global Rallycross, but there are bigger stages to play on.
What's interesting, is that this commitment to motorsports comes right as the automaker is denying plans to build a small CUV for its passenger car lineup. According to Auto Express, the company has no intention of developing a crossover smaller than the current XV Crosstrek. Even if the sales are there, it would just cost too much to develop. In the US, at least, the XV is doing great with sales up 42 percent in July.

2016 Subaru Outback, Legacy recalled for driveshaft problem

The Basics: Subaru is recalling 3,251 examples of the 2016 Legacy built between Oct. 24, 2015, and Nov. 16 2015, and the 2016 Outback manufactured between Oct. 24, 2015, and Nov. 17, 2015. The Problem: The driveshaft could separate from the rear differential because the securing nuts aren't tight enough. If this happens, the driveshaft could hit the gas tank, leading to a fuel leak. Injuries/Deaths: Subaru spokesperson Michael McHale confirms to Autoblog there are no reports of accidents, injuries, or fires. The fix: Subaru dealers will inspect the nuts and tighten or replace them as necessary. If you own one: Subaru expected the recall to begin on December 10, so owners should receive notification very soon. Related Video: RECALL Subject : Drive Shaft May Detach From Differential Report Receipt Date: NOV 24, 2015 NHTSA Campaign Number: 15V794000 Component(s): POWER TRAIN Potential Number of Units Affected: 3,251 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU LEGACY 2016 SUBARU OUTBACK 2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2016 Legacy vehicles manufactured October 24, 2015, to November 16, 2015, and Outback vehicles manufactured October 24, 2015, to November 17, 2015. Due to the improper tightening of the securing nuts, the drive shaft may separate from the rear differential. CONSEQUENCE: If the drive shaft detaches from the rear differential, it may strike the fuel tank and result in a fuel leak, increasing the risk of a fire. REMEDY: Subaru has notified owners, and dealers will inspect the fastening nuts, and tighten or replace them, as necessary, free of charge. The recall began on December 10, 2015. Owners may contact Subaru customer service at 1-856-488-8500. Subaru's number for this recall is WQV-57. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

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