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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: 1990 Geo Storm GSi

General Motors created the Geo division in 1989, to sell rebadged Suzukis, Toyotas, and Isuzus in the United States. Most of these cars were snoresville econoboxes, but two Geo models got high-performance upgrades and GSi badging: the Prizm GSi (aka Toyota Corolla GT-S) and the Storm GSi (aka Isuzu Impulse). We saw a discarded Prizm GSi in this series last year, and now it's the Storm GSi's turn, with this '90 in a Phoenix self-service yard. The Storm GSi had a DOHC four-cylinder Isuzu engine making 130 horsepower, which was excellent for a 1990 car weighing a mere 2,392 pounds. The 2,174-pound 1990 Honda CRX Si had a mere 108 horsepower (and two seats), and it cost $11,130 versus the Storm GSi's just-slightly-higher $11,650 price tag. Of course, Isuzus never developed quite the reputation for reliability enjoyed by Hondas. This Isuzu notched up an impressive final mileage figure, though. The Storm sold for just the 1990 through 1993 model years, and the GSi still has a devoted following to this day. The interior is straight-up late-1980s-style Japanese-econobox stuff, with plenty of tough gray plastic. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Not long ago, Toyota and Honda were the last word in the world of sporty imports. But that was just the calm... before the Storm. Featured Gallery Junked 1990 Geo Storm GSi View 12 Photos Auto News Isuzu Automotive History Performance geo

Junkyard Gem: 1990 Geo Storm

General Motors began selling rebadged Isuzus in the United States all the way back in 1972, when the Isuzu Faster pickup showed up here as the Chevrolet LUV. A few years after Isuzu began selling vehicles in North America under its own branding, The General began selling Isuzu I-Marks as Chevrolet Spectrums; when the time came to create the Geo division to sell badge-engineered Suzukis, Toyotas and Isuzus here, the Chevy Spectrum became a Geo and a sport compact based on the Isuzu Piazza appeared in Geo dealerships as the Storm. Today's Junkyard Gem is a first-model-year example of the Storm, found with lots of miles and plenty of rust in a Denver-area car graveyard recently. Isuzu began selling this car as the second-generation Impulse for the 1991 model year. Few American car shoppers were interested in that car, but the Storm sold well. For the 1991 model year, a "Wagonback" version of the Storm was added to the lineup. The Storm was discontinued after 1993, and Geo itself got the axe in 1997. The 130-horsepower GSi version of the Storm was one of the best quickness-per-dollar deals of its era, but this car is the base Storm with just 95 SOHC horses under its hood. An automatic transmission was available, but this car has the standard five-speed manual. How much did it cost new? The list price was $10,390, or about $24,741 in 2023 dollars.  This one got well past 200,000 miles during its career. The rust is nasty. This car might have been a runner at the end, but corrosion plus high miles, manual transmission and defunct brand all conspired to send it to this place. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The new Geo Storm is rolling in now. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. So cheap! This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The JDM headlights definitely looked better than the sealed-beams we got here.