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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 Impreza Sedan Concept previews future four-door in LA

Subaru previewed the next-generation Impreza hatchback at last month's Tokyo Motor Show, and now the appropriately named Impreza Sedan Concept displays how that concept looks in four-door form. Like the five-door, Subie says the styling elements on display here point towards the company's future design direction, not to mention the next-generation Impreza sedan that'll arrive late next year. Other than some darkened trim and slight tweaks to the lower air dam, the sedan and hatch concepts are essentially identical forward of the B-pillar. They even feature the same scalloped character line down the sides. The rear shape echoes the front's angular styling and also shares the five-door's C-shaped taillights. The Impreza Sedan Concept shares a similar footprint as the 2015 Impreza four-door. The wheelbase grows by an inch, to 105.1. However, overall length drops by about the same amount to 179.3 inches. Spy shots already show the 2017 Impreza sedan testing in heavy camouflage, and rumors suggest that it rides on the company's upcoming modular platform. A direct-injected boxer engine is reportedly under the hood, as well. Scroll down for more details in Subie's press blast. Subaru "Impreza Sedan Concept" Makes World Debut at 2015 Los Angeles Auto Show Tokyo, November 19, 2015 – Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru automobiles, today unveiled the "Impreza Sedan Concept" at the 2015 Los Angeles Auto Show. The Impreza Sedan 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 Sedan 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 compact sedan style. 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.

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute