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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

Future Classic | 1990-1993 Geo Storm and Isuzu Impulse

You don't see a lot of Geo-branded cars on the road these days, despite the fact that the General Motors' captive-import brand was actually pretty successful for around a decade. Perhaps the most recognizable vehicle to roll into Geo showrooms was the Prizm, which basically amounted to a rebadged Toyota Corolla built in California (which means General Motors was competing against its own Chevy Cavalier in the compact sedan market). And then there were the Geo Metro sub-compact, known for years as the most fuel-efficient vehicle you could buy in the United States, and the spunky Geo Tracker SUV that carried on for several years wearing Chevrolet badges after Geo's demise. Those are all interesting vehicles, but for this article we're going to focus in on the sporty Storm model. Like the other Geo vehicles, the Storm was sort of a joint venture, in this case with Isuzu, the Japanese automaker best known for making SUVs and big commercial trucks. Back in the day, though, Isuzu had some legitimately intriguing little cars in its showrooms. The Storm was based heavily on the second-generation Isuzu Impulse (known as the Piazza in other markets). And, well, you see even fewer Isuzus on the road these days than Geos. MotorWeek | Retro Review: '90 Geo Storm GSi Why are the Geo Storm and Isuzu Impulse future classics? They may never actually be "classics" in the same way a Ford Mustang or Chevy Camaro may be, but they are still interesting cars. And for potential buyers of a certain age, memories of gawking at sleek-looking Geo Storms everywhere you looked mean the nostalgia factor is high. If nothing else, we're pretty sure a nicely kept Storm or Impulse would draw a certain crowd at a local car show. While the Storm was way more popular with American buyers in the 1990s, the rarity of the Impulse means it's probably the more desirable option if future collectibility is a factor. What is the ideal example of the Geo Storm or Isuzu Impulse? The most valuable version of the duo is surely the rare Isuzu Impulse RS (the silver car above) with all-wheel drive and a turbocharged 1.6-liter four-cylinder engine that spun out 160 horsepower and 150 pound-feet of torque. According to reports, only about 600 of these machines were sold in the States — complete with "Handling by Lotus" badging (General Motors held sizable stakes in both brands at the time) — which means they aren't very easy to find for sale.

Junkyard Gem: 2004 Isuzu Axiom

Though the final Isuzu-badged car sold in the United States was the 1993 Isuzu Stylus, Isuzu did very well selling trucks here during the remainder of the 1990s. Things still looked pretty good for Isuzu as the new century dawned, but by then everybody had upped their truck game and many of the competition's offerings made Isuzus seem old-fashioned. Isuzu cooked up a distinctive new body for the Rodeo chassis, arranged to have it built at Subaru's plant in Indiana, and called it the Axiom. You won't see many Axioms today, but I found this last-year-of-production example in an Oklahoma City car graveyard recently. As we all know, the decline and fall of Isuzu in North America accelerated quickly as the 2000s progressed. The VehiCROSS was interesting but just too weird and it got the axe after 2001. The increasingly antiquated Trooper held on through 2002, the Amigo (aka Rodeo Sport) through 2003, and that left just the Axiom and Rodeo to hang on by their fingernails into 2004. By 2005, the only new Isuzu-branded passenger vehicles sold in the United States were two rebadged Chevrolets: the Ascender (Trailblazer) and i-Series pickup (Colorado). In early 2009, Isuzu announced that it would be departing, presumably forever. You can still buy new Isuzu commercial trucks here, of course. The 2004 Axiom had MSRPs starting at $24,849 for the S trim level with rear-wheel-drive and going up to $30,499 for the upscale XS with all-wheel-drive. That's about $40,703 and $49,958 in 2023 dollars. Joe Isuzu was brought back after a decade of retirement to pitch the Axiom. Note that Joe's brag in this commercial is how much cheaper the Axiom was than the Volvo Cross Country. This truck is the cheap Axiom S 4x2, which still seems well-appointed. The 2004 Axiom's 3.5-liter V6 engine made 250 horsepower and 246 pound-feet, up from 230 horsepower and 230 pound-feet in the 2002-2003 Axioms. The power improvements were the result of the switch to gasoline direct injection fuel delivery for the '04 Axiom. Isuzu was so proud of the system that it applied these badges. The only transmission available was a four-speed automatic. The Axiom was introduced to the American public as the SPYMobile in the 2001 film "Spy Kids." The body and interior of this one appear to be nice enough for a 19-year-old vehicle, so we can assume that it showed up in this place as the result of expensive mechanical problems. We'll get to the Joe Isuzu ads in a moment.