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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 recalls WRX and Forester 2.0XT for turbo intake problem

The Basics: Subaru will recall 18,200 examples of the 2015-2016 WRX and Forester 2.0XT. The WRX's have production dates between April 10, 2015, and October 21, 2015, and the Foresters come from April 10, 2015, to October 20, 2015. The Problem: The turbocharger intake duct can crack, which could cause the engine to run rough or stall. According to Subaru, this problem happens because a supplier used an incorrect material for a specific production lot of parts. Accidents/Injuries: None reported. The Fix: Dealers will inspect the turbocharger air intake duct. If the part is from the affected lot, then owners get a replacement. If you own one: Subaru hasn't yet told the National Highway Traffic Safety Administration when this recall would begin. RECALL Subject : Turbocharger Intake Duct Crack may cause Stall Report Receipt Date: MAR 21, 2016 NHTSA Campaign Number: 16V162000 Component(s): ENGINE AND ENGINE COOLING Potential Number of Units Affected: 18,200 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU FORESTER 2015-2016 SUBARU WRX 2015-2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2015-2016 WRX vehicles manufactured April 10, 2015, to October 21, 2015, and Forester 2.0XT vehicles manufactured April 10, 2015, to October 20, 2015. The turbocharger air intake duct may crack and possibly result in an engine stall. CONSEQUENCE: An engine stall increases the risk of a crash. REMEDY: Subaru will notify owners, and dealers will inspect the turbocharger air intake duct, and replace it as necessary, free of charge, depending on the lot number found on the duct. The manufacturer has not yet provided a notification schedule. Owners may contact Subaru customer service at 1-800-782-2783. Subaru's number for this recall is WTA-62. 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. Related Video:

IIHS says these are the safest cars of 2013

The Insurance Institute for Highway Safety (IIHS) has revealed its annual list of Top Safety Picks, an award that highlights automobiles it says offer "superior crash protection." A new and still more significant award, the Top Safety Pick+ honor, is given to those vehicles that earn good ratings for occupant protection in four out of five areas of measure. And while some 117 vehicles were given the TSP seal of approval for 2013, just 13 passed muster for TSP+.
To be fair, IIHS only evaluated 29 vehicles with its new testing procedures for TSP+ (we'd expect that the number of qualified cars will rise substantially for 2014). Luxury and Near Luxury midsize cars were the first groups evaluated, followed by midsizers in the Moderately Priced Cars category - unsurprisingly, it's only midsize cars that you'll find among the class this year.
Only two luxury sedans made the list of 13 for 2013: the Acura TL and Volvo S60. The other 11 cars on the list included entries from domestic, Japanese and German car makers: Dodge Avenger, Chrysler 200, Ford Fusion, Honda Accord (sedan and coupe), Kia Optima (but not its close kin, the Hyundai Sonata, strangely), Nissan Altima, Subaru Legacy and Outback, Suzuki Kizashi and the Volkswagen Passat all made the grade.