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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

Cummins and Isuzu to collaborate on prototype electric truck

Cummins, the company known best for its diesel engines, just announced a partnership with Isuzu to “create a prototype medium-duty, battery electric truck” for North America. Exploration of electric powertrains isnÂ’t totally new for Cummins, as itÂ’s talked about a transition to electric since 2017. In fact, Cummins even revealed a battery-powered truck back then, too. This electric truck with Isuzu is new, though, and itÂ’s going to put the Cummins PowerDrive6000 powertrain into IsuzuÂ’s F-Series truck that you can see in the photo above. Cummins does not detail specs for its PowerDrive6000, but weÂ’ve seen the drive unit used in a hybrid concept from Cummins previously. It provided 50 miles of electric range when the battery pack in that truck was full, but with this being a full battery electric vehicle, we suspect that Cummins and Isuzu are using a much larger battery pack for more range. We donÂ’t have any vital specs like range or power, but we suspect those will come at a later date. This year will see Isuzu and Cummins put the truck through a pilot and demonstration phase in North American fleets. After thatÂ’s been completed — assuming it is successful — the partnership could see Isuzu and Cummins collaborate on building battery electric trucks for commercial use here in North America. “We are excited to be working with Isuzu to accelerate decarbonization within the partnership,” said Amy Davis, Vice President and President of New Power at Cummins. “ItÂ’s through our joint commitment in innovation that we provide our customers with safe, reliable zero-emissions solutions.” Related video:

Come see all the cool cars in Geneva that we don't get in America

The Geneva Motor Show is usually the highlight of auto show season. There are always a ton of interesting debuts. This year alone, we saw new models from McLaren, Ferrari, Porsche, Mercedes-AMG and more. That doesn't count the ridiculous and tasteless stuff that comes out of Brabus or Mansory. Personally, one of the biggest reasons I enjoy going is to see all the cool stuff that we won't get in America. Watch the video for a brief walkaround of the show floor. Even the city streets offer unusual sights for Americans. Geneva is so close to France that there are Citroens, Peugeots and Renaults everywhere. Then there are cars like the Volkswagen Polo and Up! or a multitude of wagon variants of cars like the Mercedes-Benz C-Class and Audi A4 and A6. Even the exotics come out in droves. There was a Porsche 911 Reimagined by Singer parked along a side street. There were two Lamborghini Aventadors parked outside our hotel. Just Geneva things. Design/Style Geneva Motor Show Isuzu Suzuki Citroen Peugeot Renault SEAT Skoda Truck Coupe Hatchback Wagon Performance Videos renault megane renault clio peugeot 508