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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

Common Nissan Maxima vs. Subaru Legacy breakdowns

The Nissan Maxima and Subaru Legacy are both popular sedans. Similarities can be seen in price, styling, and performance. What are some common repair problems seen in each model? When do they occur and how much do they cost to fix? What about how to pay for car repairs? Let's find out. Check Engine Light Both Maxima and Legacy owners dread the appearance of this little light. In the Nissan, it's most likely a failed ignition coil. This part transforms the car battery voltage into a higher voltage required for starting. This problem appears more often in Maximas with over 140,000 miles. The cost to replace the ignition coil runs around $400, parts and labor. The check engine light on the Subaru Legacy is more often due to a failed oxygen sensor. The O2 sensor measures the oxygen level in the exhaust and can affect fuel consumption. This part fails more frequently in models with over 110,000 miles. The repair costs around $200. Legacy Sound System Problems It's not uncommon for the Legacy to have sound system failures at 140,000 miles or more. The speakers might not work or only function intermittently. Hitting a bump might also cause the radio to shut off. Repair costs here can vary, but the typical charge is around $600. Nissan Check Engine Light Part 2 The Nissan check engine light also may appear due to oil leaking from the camshaft position sensor. Difficulty with stalling and acceleration might occur as well. The repair costs around $250 and is more frequent in models with over 104,000 miles. Big-Ticket Items Some repairs are especially costly. In Maximas with over 120,000 miles, the power steering pump may begin to malfunction. This produces a clunking or knocking sound when driving over uneven terrain. Steering might be affected with abnormal noises heard when turning the steering wheel. A Nissan Maxima power steering pump replacement costs around $1,250, parts and labor. Now, if you begin to feel your Legacy vibrating or shuddering at around 116,000 miles, it may be a transmission problem. It's more noticeable when the car shifts gears. Legacy transmission repair can be expensive, costing up to $2,000 or more. Even more costly is a Subaru Legacy head gasket failure, seen more often at 110,000 miles or more. AC malfunction, fluid leaks, and engine overheating can occur when the head gasket fails. The repair costs are around $3,000.

2015 Nissan Micra is your cheapest new car, Canada

Canadians looking for a brand-new car on the cheap, take note. This is the 2015 Nissan Micra, and it will arrive at dealerships this spring boasting a starting price of $9,998 Canadian dollars (circa $9,100 US), well under the $11,898 asked for a 2014 Versa Sedan.
Of course, that ultra-low asking price isn't for a fully loaded model. The Micra will arrive in the Great White North in three trims - S, SV and SR - with the buyer's choice of a five-speed manual or a four-speed automatic. A 109-horsepower, 1.6-liter four-cylinder is the sole engine choice. There will also be a number of accessory options that should allow some personalization for the small cars, with Nissan claiming that things like door handle finishers and mirror caps will be available in five different colors (plus chrome) for under $200.
"At Nissan, we understand the need in Canada for small, urban-friendly cars that are fun to drive and express their driver's personality. With Micra, we're delivering a proven global vehicle at a very attractive price - it's going to make a huge impact on the market," said Christian Meunier, the President of Nissan Canada.