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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

By the second half of the 1990s, the tremendous sales success of the Ford Explorer (introduced as a 1991 model) and Jeep Grand Cherokee (introduced as a 1993 model) had made it clear clear that the future of the American road would be trucks. Any automotive manufacturer not selling a full line of SUV-ish machinery here would be irrelevant soon after the dawn of the new century, and the car-and-bike-centric American Honda Motor Company was therefore in big trouble. The Civic could be used as the basis for a small crossover SUV (which debuted here as the 1997 Honda CR-V), but Honda needed to buy time to design and produce the platform that would underpin the 2001 Acura MDX and 2003 Honda Pilot. That time was purchased via a deal to sell rebadged Isuzu trucks as Hondas and Acuras. Today's Junkyard Gem is one of those Honda-ized Isuzus, found in a Colorado boneyard. Honda began selling the Isuzu Rodeo as the Passport (recycling the name they'd used on the U.S.-market Super Cub motorcycle) for the 1994 model year, and Acura dealers started moving SLX-badged Isuzu Troopers in the 1997 model year. Just to make things interesting in the Isuzu-Honda world, North American Isuzu dealers sold Honda Odysseys with Isuzu Oasis badges at the same time. Isuzu had gone all-truck for the American market after the last Styluses (and closely related Geo Storms) were sold here as 1993 models. Sadly, Isuzu's final (non-commercial) new vehicles sold here were rebadged Chevy Trailblazers and Colorados, more than 30 years after Chevrolet began selling Isuzu Faster pickups here with LUV badges. Honda never did build any body-on-frame trucks, but that proved unnecessary in order to make some money during the CUV/SUV era. The SLX never sold particularly well, but it gave Acura dealers a luxury truck to park next to the Integras, TLs, RLs, CLs and NSXs in their showrooms. After 1999, the SLX was gone, leaving just the 2000 model year as a blank spot for Acura-badged SUVs. This truck held together like a real Honda product, getting fairly close to the 300,000-mile mark (I've found junkyard Accords with better than a half-million miles on their odometers, plus one apiece Civic and CR-V that got past 400,000 miles during their lives). The original owner's manuals were still in the glovebox when I found this truck. At the end, it appears that it was towed away for being parked illegally. Maybe the engine or transmission failed and its final owner just walked away.

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.