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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

Are you the Subaru WRX Concept for New York?

When Subaru dropped a hint about bringing an "all-new performance concept car" to the New York Auto Show this year, we immediately started hoping and praying that a conceptual iteration of the next WRX was in the offing. Looks like that might have paid off. While no official word has yet been written or uttered from Subaru, a French website called Blog Automobile has released a gallery of images that would seem to spill the beans about the WRX Concept.
If the leaked images are correct - and they look awfully complete and well done if they're not - WRX styling is taking a turn for the handsome. The sleek sedan in these images has all of the cues that we've come to expect from our rally-ready Imprezas: a dominating hood scoop and very wide stance with beefy wheels, and seems to miss only the rear wing to fit the perfect WRX stereotype. (And, yes, it should have gold wheels.)
There's no press release to be found, but the source is citing specifications as if it knows what it's talking about. We're told that 275 to 300 horsepower are the likely output of the turbocharged boxer four-cylinder engine, and that brakes with ventilated discs and six-piston calipers are there to haul the all-wheel-drive Scooby down from speed. If our earlier reporting is correct, we might expect to find an electric turbo under that imposing hood, too.

Subaru Cross Sport Design Concept is a BRZ with a backpack

Sports cars are a notoriously tough sell over the long-term. Like convertibles, sales of even the best sports cars tend to be front-loaded in the first couple of years, at which point they drop off like a stone. That may serve to explain this mysterious two-door wagonback concept from Subaru, dubbed Cross Sport Design Concept.
While details aren't exactly thick on the ground, at first blush, this appears to be a higher-riding BRZ with a more utilitarian backpack. Reports suggest the rear-wheel-drive sports coupe's chassis is riding underneath, despite the fact that the Cross Sport is 2.6 inches longer overall. Assuming the chassis itself is basically unmodified and the 2.0-liter, flat, four-cylinder engine is untouched, this could be a very effective way for Subaru to increase its return on investment in the BRZ's underpinnings while generating a very cool (if niche) shooting brake model.
With the exception of a few bits of concept car frosting (wood-lined cargo bay floor, overly-detailed steroscopic camera mounts, slivered side mirrors, etc.), this thing looks production ready, and that's just ducky with us.