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NHTSA investigating 561k Toyota Prius hybrids for possible steering shaft defect

The Detroit News is reporting that the National Highway Traffic Safety Administration will investigate some 561,000 Toyota Prius models for potentially defective steering shafts. The affected hybrid models are from the 2004-2009 model years. The story indicates that NHTSA is weighing whether or not to grant a defect petition, which claims that Toyota incorrectly assembled the hatchback's steering linkage.
As of this writing, there is no recall. However, a recall based on the Prius steering shaft would be the third related to steering issues for the model since 2006. Seven years ago, Toyota recalled 170K Prius models for potential cracking of the intermediate shafts, and in November of 2012, the automaker recalled 670K units to replace the steering shaft extension assembly.
We'll be monitoring NHTSA's signals to see if this investigation turns into a full-fledged recall. For now, stay tuned.

Lexus LX to get diesel engine?

Australian consumers appear poised to get another diesel-burning luxury SUV in the near future, and word is it's coming from Lexus, of all automakers. Sean Hanley, chief executive of the company's branch in Oz, recently told Aussie website Drive that he's "pretty confident" that the new engine for the LX is getting the green light.
Like in the US, the LX in Australia is currently only offered with a 5.7-liter, gasoline-burning V8. However, sales of the big SUV are presently minuscule Down Under, with Drive reporting just 153 LX570s sold in all of Oz last year. Hanley is negotiating with Japan to get the new diesel in hopes of boosting flagging sales. If his efforts are successful, it would be the first diesel engine offered in a Lexus there. Hanley didn't specify exactly which mill the SUV would get. However, given the LX's close relationship with Toyota Land Cruiser, the diesel 4.5-liter twin-turbo V8 already available in the Toyota in markets outside of North America seems like a natural choice.
Don't expect the variant to be hopping across the Pacific, though. Lexus spokesperson Allison Takahashi tells Autoblog she has heard "nothing" about an oil-burning LX coming to the US. That's not a huge surprise, though, because neither Toyota nor Lexus offer any diesels in their lineups today. Also, Lexus has only sold 1,981 LX570s through June, which only placed it ahead of the LFA supercar in the brand's sales. It's probably just not worth certifying the engine for such a low-volume model.

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