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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: 1992 Geo Storm

GM's Geo brand existed from the 1989 through 1997 model years. While mostly remembered today for the Suzuki Cultus-based Metro (which continued to be sold with Chevrolet badging until 2001), there were also Geo Prizms (California-built Toyota Corollas), Geo Spectrums (Isuzu I-Mark), Geo Trackers (Suzuki Sidekick), and Geo Storms (Isuzu Impulse). Storms are very rare now, but I found this one in Colorado last week. The idea of the Geo brand was that it would lure young car buyers in a way that wouldn't be possible with stodgy brands such as Oldsmobile or Buick. While GM never sold as many Geos as hoped, enough hit American roads that they were pretty numerous for a while. 1980s-style pink-and-blue graphics remained relevant into the early 1990s. I'm not sure if these pink decal stripes were done at the factory, at a dealership, or later on in someone's back yard. The Storm GSi was the factory-hot-rod version, but this is an ordinary Storm with the 95-horsepower, 12-valve engine. Automatic transmission, of course. It never made it to 100,000 miles. The car seems to be in good shape, so perhaps something broke at about age 10 and it sat in a garage for the next 15 years. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This ad, like the Storm, was very much of its time. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. GM emphasized the Japanese origins of the Storm. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. In Japan, this car was sold as the Yanase-Isuzu PA Nero, a catchy name for a "Nice Day Fair." Featured Gallery Junked 1992 Geo Storm View 16 Photos Auto News Isuzu

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.