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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

2018 Mitsubishi Outlander PHEV Quick Spin Review | Why doesn't everyone make one of these?

The 2018 Mitsubishi Outlander PHEV took a remarkably long time to get to the United States. It went on sale in Europe in 2013, and was originally planned to come to America the year after, but didn't arrive until late in 2017. Mitsubishi was also fortunate that, in the time it took to finalize the American model, the entry-level competition remained primarily sedans and sedan-like hatchbacks, with the exception of the Niro PHEV, a crossover smaller than Outlander, and closer to a traditional hatchback. So the question is, was it worth the wait, and is it worth considering against other plug-in hybrids? A mostly frugal and very smooth powertrain The big appeal of the Outlander PHEV is of course its plug-in hybrid powertrain. It comprises a naturally aspirated 2.0-liter four-cylinder, and two electric motors, one up front, one in the rear. This powertrain can function in three different ways. There's full electric mode, series hybrid mode (the gas engine acts like a generator, and propulsion is handled solely by the electric motor), and parallel hybrid (a clutch engages the engine to the front motor for additional propulsion assist). The Outlander switches automatically between these operational schemes depending on drive mode settings. For example, with a full charge you can press a button to keep it in EV mode, at least as long as there's enough battery power. Two other buttons can allow you to save the battery charge for use later, such as in town after a highway drive, and a charge button to replenish the battery level while driving. Because of this powertrain layout, the Outlander PHEV drives much like an all-electric car most of the time. It's nearly silent except when the engine kicks on, or when accelerating or decelerating hard. In the case of the latter, you can pick up a faint, futuristic whir from the motors. It feels very smooth thanks to a lack of transmission shifts. The throttle is responsive since there's no CVT adjusting ratios or a torque converter making responses a little slushy. And of course there's the instant torque that all electric motors provide, which makes the Outlander spunky around town. You can even adjust the strength of the battery regeneration by putting it from "D" for drive into "B." Then you can set the strength via the steering wheel paddles. Also impressive is the fact that the powertrain is still quite smooth and quiet when the engine fires up.

Mitsubishi planning to bring back Lancer as hybrid crossover

It looks like the Mitsubishi Lancer is about to undertake a daring transformation from a ten-year-old sedan to a crossover. The Eclipse has already shed its coupe roots and become the Eclipse Cross, and now it's the Lancer's turn to become a high-rider. The carmaker already teased its future plans with the e-Evolution concept last year (pictured above), again combining a previously successful Mitsubishi nameplate with new crossover intentions. Now, talking to AutoExpress, Mitsubishi's chief operating officer and chief designer both hint of the Lancer taking the shape of the e-Evolution. For Mitsubishi, the Lancer's segment still looks very viable in the next decade, but it doesn't necessarily want to fight the Ford Focus and the VW Golf with a conventional hatchback, let alone a three-box saloon. "We believe we have a solution that could fit the segment", said COO Trevor Mann. "[The segment's] numbers are still expanding in China, so there's appeal. And I think because the segment is so large globally, we've got to take a look at it." The chief designer, Tsunehiro Kunimoto said, "Just because it's C-segment, it doesn't mean it has to be a very conventional hatchback. Maybe we can create a new type of hatchback vehicle. We're thinking quite radically." It is also likely that the Lancer's eventual replacement will use hybrid technology and a Renault-Nissan Alliance platform — and an all-wheel-drive option would still be a nod to the Lancer Evo's heritage, at least partially justifying any use of the Evolution brand. Trevor Mann says the product timeline is largely set until 2025, and the existing crossovers in the portfolio, the Outlander and the Outlander Sport (known elsewhere as the ASX) will get replacements. The company is now directing its attention to the Lancer and the Montero, both of which have last had a major update over ten years ago. The Lancer was phased out in the U.S. last fall after a very long run. Related Video: