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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

Junkyard Gem: 1997 Acura SLX

When I'm prowling wrecking yards, I'm always on the lookout for obscure examples of badge engineering, and the weirder they are, the better I like them. While I haven't managed to spot a junked Suzuki Equator yet, I have photographed such rarities as the Saab 9-2x and Isuzu Ascender. A few weeks ago, I encountered one of the real oddities of the Honda-Isuzu dealmaking of the 1990s: a 1997 Acura SLX, a luxed-up Isuzu Trooper that sold very poorly and is now mostly forgotten today. Plenty of Acura SUVs designed and built entirely by Honda roll out of American showrooms today, but the 1990s SUV boom caught Honda by surprise. The first MDX wasn't ready until the 2001 model year, so Honda made a deal to take Isuzu Troopers, apply wood and leather inside and Acura badges outside, and cash in on North Americans' increasing disdain for minivans, sedans, and station wagons. Americans were very familiar with the Trooper, which was sold here from the middle 1980s until the 2002 model year, when the Chevrolet Trailblazer-based Ascender went on sale. The Isuzu name stuck around on these shores until 2008. The SLX was a decent enough truck, but there was no disguising its proletariat Trooper roots from status-conscious SUV shoppers who wanted to look more oligarchic while conquering a half-inch of snow in the mall parking lot. It didn't help that the 1997 Trooper L listed at $27,800 and the SLX Premium cost $38,300 (that's about $44,200 and $60,900 in inflation-adjusted 2018 bucks). SLX sales started off weak and plummeted after that. After 1999, the SLX was done. I spent years trying to find one in California and Colorado wrecking yards, but the few that were sold seemed to be sturdy enough to stay alive for a couple of decades. Finally, this high-mile '97 appeared in a Denver yard. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Honda and Isuzu announce hydrogen partnership for heavy-duty trucks

TOKYO — Japan's Honda and Isuzu on Wednesday said they would jointly research the use of hydrogen fuel cells to power heavy-duty trucks, looking to expand fuel cell use by applying the zero-emission technology to larger vehicles. As part of a two-year deal, Isuzu will test Honda's fuel cell powertrain, which was designed for passenger cars, in Isuzu's commercial trucks, the companies said, which could pave the way for using the technology in a wider range of vehicles. Automakers are looking to develop more electric vehicles (EVs) to comply with tightening global emissions regulations. Many see battery-powered EVs as a solution for passenger cars in urban settings, but a growing number see hydrogen fuel cells as an effective way to power trucks, buses and other big vehicles. "Although we have done extensive R&D into passenger FCVs (fuel cell vehicles), we have not been able to study how best to apply the technology to commercial vehicles," a Honda spokesman told reporters at a briefing. "This partnership will allow us to do that." Fuel cell vehicles generate their own electricity using hydrogen stored in onboard tanks. This enables them to travel longer distances and refuel more quickly than battery EVs, while using less costly energy storage systems. "We think that FCV technology is well suited for heavier trucks which travel longer distances, and this partnership will enable us to examine this further," an Isuzu spokeswoman said, adding that the truck maker was also developing various lower-carbon powertrains including battery-electric technology for shorter-distance vehicles. With its Clarity Fuel Cell sedan, Honda is one of a handful of automakers which have developed and marketed fuel cell-powered passenger cars. Light- and medium-sized truck specialist Isuzu has for years has focused on diesel engine technology and has yet to market fully electric vehicles. But a price tag starting around $70,000 for the Clarity and scant hydrogen fueling infrastructure globally, Honda has seen limited take-up of that model and other FCVs since they began marketing them around 2015. In 2018 Honda sold just 654 Clarity FCVs, which are available only in Japan and the United States through leasing programs, compared with Honda's total annual global sales of 5.23 million cars.