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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: 1998 Isuzu Oasis

When I'm crawling through a big self-service wrecking yard (as I do at least once a week) in search of interesting discarded vehicles, the top of my "look for" list always includes weird and obscure examples of badge engineering, the weirder and more obscure the better. So far the Nissan-made Suzuki Equator has eluded me, but I have managed to shoot such junkyard badge-engineering oddities as the Mitsubishi Precis (Hyundai Excel), Acura SLX (Isuzu Trooper), Saab 9-2X (Subaru Impreza) and Saturn Astra (Opel Astra). Isuzu's dire need for a minivan in the late 1990s led to a deal with Honda to sell the first-generation Odyssey as the Oasis (even as the Trooper became the Honda Passport). Few bought the Oasis, but I found one in a Denver yard a few months back. Pure Honda throughout, down to the VTEC badges on the engine. This is the 2.3-liter F23 four, rated at 150 horsepower for 1998. Sold new in Denver, will be crushed in Denver. Though Americans bought many a Geo or Chevy built by Isuzu during the 1980s and 1990s (not to mention the big-selling Isuzu-made Chevy LUV truck of the 1970s), the Isuzu brand never really caught on over here. By 2009, Isuzu was gone. The first-generation Odyssey was well-made and efficient, but it was designed for the Japanese home market and thus was too small for most American van shoppers in 1998 (most of whom were moving to SUVs around that time, anyway). You could fit a lot of people and gear in this small-footprint machine, but that was more important in crowded Japanese cities than in sprawling American suburbia. Collectible? Not at all. But an interesting piece of automotive history. I can't find any Oasis ads online, so let's watch a JDM commercial for the first-gen Odyssey, featuring the Addams Family. Featured Gallery Junked 1998 Isuzu Oasis LS View 17 Photos Auto News Isuzu Automotive History

Junkyard Gem: 1986 Isuzu I-Mark Hatchback

Thanks to the long global reach of The General's tentacles, Americans looking for economy cars at GM dealerships during the middle 1980s could buy Suzukis (the Chevrolet Sprint), Opels (the Chevrolet Chevette), Daewoos (the Pontiac LeMans), and Isuzus (the Chevrolet Spectrum). Just as Mitsubishi sold Mirages in the United States while Chrysler continued to sell the Mirage's Colt sibling, Isuzu moved in with the new front-wheel-drive I-Mark to compete with its Spectrum twin. These cars weren't big sellers and they didn't last very long on the road, but I managed to find this '86 in a Denver, Colorado, self-service wrecking yard. The I-Mark was known as the Gemini in its Japanese homeland and in Europe; the front-wheel-drive second-generation Gemini debuted in 1985. This one didn't make it to 150,000 miles, unlike most of its Honda, Toyota, and Nissan competitors, but it was pretty cheap when new. The hatchback listed at $7,149 in 1986, dismayingly more than the stripped-down '86 Civic 1.3 hatchback ($5,479) but closer to the similarly equipped Civic DX hatchback ($6,699). If you were really brave that year, you could have purchased a new Hyundai Excel for a mere $4,995. This is the base engine, a 1.5-liter four rated at 70 horsepower. Believe it or not, an I-Mark Turbo was available a year later, and it boasted 110 horses. My favorite thing about 1980s Isuzus is the way the HVAC controls are labeled. You can choose between "wind in your long, feathered hair" and "wind on your high-heeled disco boots" settings here. This car is in very nice shape for a dated econo-commuter from a long-departed brand, considering that it survived for a good 20 years while being worth approximately scrap value. For the very strong owners of decade-old Chevy Vegas, the Isuzu I-Mark seemed like a wise choice. Some of the first appearances of the soon-to-be-legendary Joe Isuzu were in I-Mark ads. Priced at only $9!