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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

Auto industry insider previews tell-all book, What Did Jesus Drive?

"It's about some of the biggest crises in history. It's about who did it right and who did it wrong." - Jason Vines
Jason Vines, the former head of public relations at Chrysler, Ford and Nissan, has seen a lot during his more than 30-year career, and now he's offering a behind-the-scenes look at the auto industry in his tell-all book What Did Jesus Drive? that went on sale this month.

A realistic approach to fixing Mitsubishi

There are going to be a lot of words written about what Nissan needs to do with Mitsubishi in the coming months and years in the interest of turning the brand around. After Nissan's purchase of a controlling stake in the diamond star brand, there's been more interest in Mitsubishi thanks to the potential of platform sharing and plenty of cash from Nissan-Renault to get the juices flowing again. But, while some have been doing their best to advocate for the return of the 3000GT, Evolution, and even the Starion - Many of these posts forget the reality of the market we live in today. As much as we like to look back fondly at the sports coupes of the '90s, a byproduct of the insane cash flows all the Japanese manufacturers had at the time, the reality of today puts a much greater emphasis on what is most-boring; Crossover SUVs, alongside mid-size and compact sedans. We do need to ask a fundamental question, how much Mitsubishi is enough to be able to continue to call the cars Mitsubishis? Aside from slight product revisions and reconfigurations, Mitsubishi (at least in North America) has been largely dependent on the same GS platform and 4B1 engines that date back to their long-time partnership with Chrysler (and Hyundai) in the mid '00s. Admittedly, the chassis and engines have served the company well, underpinning a wide variety of vehicles sold around the world, and seeing quite a few revisions to at least attempt to keep products competitive. But, the GS chassis is old, heavy, and severely out of date - and when matched to the underpowered 4B1 series engines - make for largely uncompetitive offerings in the market. While something like the Outlander Sport is indeed interesting compared to a Honda CR-V, it is by no means the smart choice in the segment. So, going forward, unless Mitsubishi has had a skunkworks of sorts developing their chassis and engine replacements over the past few years, what exactly are they planning to do for their bread-and-butter models? I think the straightforward answer is without a doubt the Nissan North America parts bin. With so many of their models selling well, and for the most part, are reasonably well-reviewed, it would be quite simple to adapt the chassis and powertrain to Mitsubishi's liking to create a high-volume alternative to what is currently available now.