1986 Suzuki Samurai 4x4 on 2040-cars

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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

Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

Junkyard Gem: 1997 Geo Metro LSi

General Motors created the Geo brand in order to sell cars built in partnership with Suzuki, Isuzu and Toyota in the United States, and Geo-badged machinery was sold from the 1989 through 1997 model years. Today's Junkyard Gem, found in a New Orleans self-service boneyard recently, is one of the very last Geos ever built. There was always a close relationship between Geo and Chevrolet, which GM demonstrated by sneaking the Chevrolet bowtie into the Geo logo. The first three Geo-branded models began their careers with Chevrolet badging before getting Geo-ized for 1989. The Spectrum, twin to the Isuzu I-Mark, was a Chevrolet from 1985 through 1988. The 1985-1988 Chevrolet Sprint was a badge-engineered first-generation Suzuki Cultus, with its second-generation successor becoming the Geo Metro. The Prizm was a NUMMI-built Toyota Corolla Sprinter, which replaced the Sprinter-based 1985-1987 Chevrolet Nova. The Daewoo-built Pontiac LeMans never became a Geo, presumably because its ancestry was South Korean rather than Japanese. In 1989, Geo added the Storm (Isuzu Impulse), followed by the Tracker (Suzuki Sidekick) as a 1990 model. In December 1996, GM announced that the Geo brand would get the axe in the fall of 1997, with the Prizm, Tracker and Metro becoming Chevrolets. This car was built at CAMI Automotive in Canada in May 1997, making it one of the final handful of Geos assembled. The Chevrolet Metro stuck around through 2001. For its final model year, the Geo Metro was available with one of two trim levels: base and LSi. This car is an LSi three-door hatchback, which had an MSRP of $9,180 ($17,906 in 2024 dollars). The base three-door hatchback for 1997 listed at $8,580, or $16,735 after inflation. The most important difference between the base and LSi versions was found under the hood. The base Metro got a 1.0-liter three-cylinder engine rated at 55 horsepower and 58 pound-feet, while the LSi got the 1.3-liter "big-block" four-cylinder with 70 horses and 74 pound-feet. I owned a '96 Metro with the four-banger for a brief period, and it wasn't quite intolerably slow. This car has the optional three-speed automatic, which added $595 ($1,161 today) to the price. It also has air conditioning and a Delco AM/FM radio, which were included as part of the $1,346 1SE option package ($2,625 in today's money). It was thus a boring but serviceable commuter car that sipped gas and got its job done for 27 years and 113,610 miles.