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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 rolls out BRZ Premium Sports Edition in Japan [w/poll]

The Subaru BRZ is many things: fun, affordable, communicative... but premium is not one of them. Yet that is precisely more of that upscale look and feel Subaru is going for with its new BRZ Premium Sports Edition.
Thus far exclusive to the Japanese Domestic Market, the BRZ Premium Sports Edition upgrades the standard model with unique 17-inch alloys and an interior spruced up with two-tone black and tan leather, along with contrast-stitched Alcantara trim for the instrument cluster, center console and door panels. There's also a set of aluminum pedals, metal and carbon trim, black mirror housings and more.
The luxed-up model wears a sticker price of 3,034,500 yen, which translates to about $31k. That would make it about $6k more expensive than a base BRZ in the United States, but to put it into more relevant context, the upgrades represent a 241,500 yen ($2,450) premium over the top-spec BRZ Type S in Japan. Assuming Subaru could keep that price premium intact, do you think it would be wise to offer the BRZ Premium Sports Edition in North America? Vote in our poll below, then have your say in Comments.

Subaru turns a WRX STI into a bobsled and (barely) makes it work

When asked how confident he felt of a successful full run down the St. Moritz-Celerina Olympic Bobrun in his specially prepared Subaru WRX STI, professional rally and stunt driver Mark Higgins responded, "50/50." In reality, he was probably being generous. It wasn't supposed to be so death-defying. In fact, Subaru's original plan was to have Higgins make several runs down the icy slope, some with journalists in the passenger seat. We were among those who traveled all the way to Switzerland for the chance to experience an automotive bobsled ride. One look at the run's famous Horseshoe Corner was all it took for us to second-guess that idea. Well, that and our pesky sense of self preservation. Higgins, though, is one of those rare humans to have been born without that fear-of-death gene. Not only is the Manx driver a professional stuntman – his resume includes sequences for Daniel Craig's James Bond – he also won the British Rally Championship three times and is the four-wheeled record holder at the famed Isle of Man Snaefell Mountain Course. So, when Higgins says some sort of vehicular stunt has only half a chance at success, well, let's just say that most mortals would say something more akin to "a snowball's chance in hell." On the topic of snow and balls, it's worth noting that the timing of Subaru's bobsled run wasn't set by choice. The Olympic Bobrun hosts regular events every winter through late February or early March. Since the track at St. Moritz is the only run in the world without an artificial cooling system, warm weather means no sledding. Combine those two facts and you end up with a very narrow window in which Subaru could go about making the modified track and a WRX STI actually fit together. Enter the boffins at Prodrive. The British engineering firm first started modifying vehicles for racing in 1984. By 1990, Prodrive was focused on turning turbocharged Imprezas into championship winners for the likes of Colin McRae, Richard Burns, and Petter Solberg. So it comes as little surprise that Subaru turned back to Prodrive to figure out how to modify a 2015 WRX STI in a way that would make it survive the pounding it would sustain on a bob run. For the record, this isn't just any 2015 WRX STI. It's actually the same car Higgins used in 2014 to set a lap record at the Isle of Man.