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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

Subaru updates EyeSight system with color-detecting cameras

Subaru is giving its EyeSight driver assistance camera system a major upgrade for the 2015 model year with new color cameras, as well as reducing its size by 15 percent over the rather bulky original system.
Subaru locates its EyeSight hardware inside the vehicle at the top of the windshield, which is unlike most other camera-based systems that have their hardware mounted somewhere in the front fascia. The benefit is that these rather expensive components are protected from any detritus that may hit the car, but the original system's size ate up a chunk of the driver's outward view. Thus, the shrinkage should be appreciated by new owners.
The upgraded stereo cameras have a 40-percent longer and wider detection range than the original system's cameras, and their ability to see color allows the system to recognize brake lights at a speed differential of 30 miles per hour, instead of 19 mph before. And as before, EyeSight continues to offer adaptive cruise control, lane departure warning and pre-collision breaking that can slow the car automatically if an imminent accident is detected, even bringing the vehicle to a complete stop.

Subaru axes WRX and STI in UK

Auto Express reports Subaru will stop selling the Impreza, WRX and WRX STI in the UK starting next year. A spokesperson with the company said Subaru has been evaluating the Impreza and its performance in the UK for the past year and has finally decided to pull the plug. That means all of the model's performance iterations will also drop off of dealer lots, including the WRX and the STI. The unnamed spokesperson said Subaru UK currently has no plans to to bring more stock of either model once the current supply sells out. That means buyers in the UK have until around early summer 2013 to get their hands on an STI.
The move comes in response to slow demand, which has trickled off in the face of competition that best the machine in terms of refinement, performance and emissions. Moving forward, the automaker says it will focus its sales efforts on models like the XV Crosstrek, Forester and Outback, as well as the company's new BRZ sports coupe.