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2017 Subaru Impreza makes a stand in the compact segment

If the 2016 Honda Civic was a revelation for the brand as a rebuke of the past couple of generations of their brand-and-butter compact, the 2017 Subaru Impreza appears to be on a parallel trajectory for the lauded all-weather performance brand. Unveiled Tuesday at the 2016 New York Auto Show, the 2017 Impreza brings in an all-new platform that is stiffer, sportier, and a much-needed improvement to stay competitive as the segment tightens up. The car features styling cues that are potentially the most attractive we've seen on a non-WRX model since the turn of the century. The car looks downright European in either sedan or hatchback form, stealing much of the thunder that the Mazda 3 and Civic had brought just a short time ago. Its lines are clean all around, the front and rear are largely without aerodynamic clutter, and much of that style is carried over to the interior that gets a much needed refresh. Gone are the overly utilitarian surfaces and buttons; a clear shift has been made to make the car seem on-par with class leaders like the Civic and Mazda 3, albeit with its own distinctive Subaru style. The dashboard seems just as straightforward as before, but packs the necessary technology to remain competitive in the segment. It seems that Subaru has listened to critiques of the outgoing Impreza, and sought out a way to continue the tradition of making AWD alternatives to the mainstream compacts, but this time without compromises on content. Up and down the four-trim model chain (2.0i, Premium, Sport, Limited), standard equipment is greatly improved. Even the standard 2.0i model will come with the necessary power features that anyone would expect, along with a much-needed 6.5" touchscreen interface that dual-boots with Android Auto and Apple Car Play - something that even the base trim Honda Civic LX does not have, and perhaps, that should put Honda on notice. In the very competitive compact segment, content is king. With standard equipment being on par with or exceeding the headlining Civic and Corolla, the added convenience of AWD is the cherry on top in places with cooler climates. Without major changes to the powertrain (slight power gains for the standard 2.0 H4 and an updated CVT), fuel economy perhaps remains to be the only caveat to the Impreza being a class-leading choice. With the current model rated at 28/37 compared to the Civic's 31/42, a slight improvement wouldn't be much in the grand scheme of things.

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

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