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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

Toyota, Honda, Nissan and more collaborating to increase fuel efficiency

Toyota, Honda, Mazda, Nissan, Subaru, Mitsubishi, Suzuki and Daihatsu have announced an alliance that will see a push to improve fuel economy from both gas-powered and diesel-powered engines by as much as 30 percent before the end of the decade.
The newly assembled Research Association of Automotive Internal Combustion Engines put the roughly $20-million project together, with the Japanese government committing to half the cost while the eight manufacturers will chip in the rest.
According to Automotive News, the automakers will team up and share basic research on internal-combustion engines in a bid to cut costs. Eventually, the results of the research will find its way into a production vehicle, although it's unclear just when we'll see the fruits of this partnership on the road.

2019 Suzuki Jimny images leaked — first new generation in 20 years

The new-generation Suzuki Jimny is ready for a reveal. Photos of a production version shown at a preview event leaked online via Instagram, and they show a front shot and a front three-quarter shot of the completely redesigned small SUV. The lines and side sheetmetal pressings of the no-nonsense, go-anywhere Jimny are a clear nod to classic '70s and '80s models. The Australian website CarAdvice notes that the lime green Jimny seen here is clearly a home market version without any wheel arch extensions, as the vehicle needs to be as narrow as possible to comply with Japanese width regulations — it is alsos likely that the Jimny here is powered with a 660cc engine from the tiny kei car class. Outside of Japan, the hips might be wider, and a recent spy shot depicting finished vehicles at the factory shows slightly wider wheel arches. Every millimeter counts, it seems — just when you want to avoid scraping a rock on an off-road trail. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Export market Jimnys should have a one-liter turbo or a naturally aspirated 1.2-liter unit. Inside, the Jimny will feature a hard-wearing interior with a chunky dashboard, a render of which was also leaked online a short while ago. Everything about that dash appears to be designed with functionality as the top requirement, with just a large central touchscreen serving as a reminder that we're getting closer to 2020, not 1980. The 2019 model year Jimny is expected to hit Suzuki-selling markets by late 2018. Jimny updates are few and far between, as the current generation was first introduced a solid 20 years ago. Related Video: Image Credit: Suzukinfluencer/Instagram Spy Photos Suzuki SUV suzuki jimny