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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

The not-Subaru crossover wagon | 2017 Volkswagen Alltrack First Drive

Funnily enough, in light of dieselgate, Volkswagen is one of the few brands (along with Volvo and Subaru) to preserve the notion that you don't need a fuel-sucking SUV to meet your life-carrying needs. And, yes, VW's history of addressing off-road desires with all-wheel-drive dates to the mid-1980s with the Quantum Syncro (a.k.a. Passat) and Golf Country – the latter, sadly, never came stateside. The latest offering toward this effort is the 2017 Volkswagen Alltrack. What's an Alltrack? It's a slightly lifted, cladded, and butched-out version of the Golf Sportwagen (yes, formerly known as a Jetta). Not to steal Alltrack's thunder, but starting in 2017 you can also get the standard Sportwagen with 4Motion AWD, which is basically the same running gear for less money. The Alltrack starts at $26,950; the 4Motion Sportwagen starts at $24,930, both with the dual-clutch automatic available at launch. Any discussion of tall wagons brings Subaru immediately to mind, both with the Outback and the Impreza-based Crosstrek. The Volkswagen Alltrack sits between the two in size at 180.2 inches long – 5 more than the Crosstrek and 9.4 inches shorter than the Outback. The 2017 Subaru Outback starts at $25,645, and VW's comparisons focus on the Outback, which is understandable given the similar starting price. A bare-bones Crosstrek starts at $22,245, but quickly gets into Golf price overlap. The Alltrack and the 4Motion Golf Sportwagen are superior daily drivers to the Subaru, whether you're doing an emergency lane change or just trying to merge onto the interstate. Meanwhile, the Crosstrek doesn't have the refinement of the VW. Can we fault Subaru though? It's set a sales record every year in a row since 2010 and is looking at about triple the sales volume of VW's Golf for 2016. So we'll stick to telling you what we think of the Alltrack and let the dealers fight for your dollars. First thing's first. Yes, you can have the Golf Sportwagen and even the Alltrack with a manual six-speed gearbox. The seven-speed DSG automatic is very good, but it's worth noting that any manual gearbox is a rarity these days, especially when we're not talking about a two-seat sports car. You will have to wait until early 2017 for that option, but it also saves you $1,100 off both models. Second, the Alltrack and 4Motion Sportwagens get identical engines. Whether manual or DSG, VW's EA888 turbocharged 1.8-liter four-cylinder is under the hood.

Consumer Reports sneaks in early review of 2015 Subaru Outback

Subaru is taking a bit of a measured risk with its new generation of Legacy and Outback. While they ride on a slightly larger platform than before, with a revised front-end design, neither of them looks to be a radical departure from models they replace. Instead of focusing on exterior styling, the Japanese brand is trying to make the vehicles better to own with more sound deadening, improved fuel economy and more available tech. Pricing for the 2015 Outback isn't available yet, but with the 2015 Legacy pricing as a guide, it's likely a few hundred dollars more than the current model.
We just had our first stab at the new Legacy, which is slated to go on sale this summer, but Consumer Reports managed to snag an early look at the 2015 Outback in a sort of mini-review to get an idea of how the new model shakes out. Like many, we'd wager, CR isn't completely sold on the new styling, but seems otherwise moderately impressed by the upgrades. The improvements to the interior and infotainment system are especially well received by them. Naturally, though, CR notes that not everything is perfect with the high-riding wagon.
Scroll down to watch CR's preview of the new Outback and see what it thinks of this practical family hauler.