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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

2013 Subaru Legacy and Outback recalled over potential steering loss

Subaru today announced a recall that affects 5,379 Legacy sedan and Outback wagon models in the United States. All of the affected 2013 model-year vehicles were built between February 15 and June 15 of 2012.
According to the National Highway Traffic Safety Administration, "the inner and outer shafts of the steering column assembly may become disengaged from one another" in these vehicles. If that happens, the driver can lose the ability to steer the vehicle, which could obviously lead to all sorts of harmful things.
Subaru will notify owners of the problem, and affected models will have their steering columns replaced at dealerships, free of charge. Scroll down for the official NHSTA report.

Recharge Wrap-up: Mazda, Subaru and Toyota PHEV, Nomadic Power grant

The next generation of the Toyota Prius Plug-in Hybrid looks to be important for Mazda and Subaru as well. Toyota will likely need to sell more of the new plug-in hybrid to meet stricter ZEV standards in California. That means it will get more extra electric range, as customers have been asking for. Subaru and Mazda will also have to adhere to the California standards beginning in 2018. Those two smaller automakers will likely license a plug-in hybrid powertrain from Toyota in order to fulfill compliance. Read more at Green Car Reports. Tesla is partnering with Dalhousie University to improve battery technology. Tesla signed a five-year research agreement with Dalhousie's Jeff Dahn, a lithium-ion battery researcher. Dahn and the 25 researchers in his lab will work with Tesla's Director of Battery Technology, Kurt Kelty, to increase capacity through improved materials. The collaboration could be important both for Tesla's automotive and stationary batteries. "Our research group's goal is to increase the energy density and lifetime of Li-ion batteries, so we can drive down costs in automotive and grid energy storage applications," says Dahn. Read more from Dalhousie University. Nomadic Power is receiving a European Commission grant worth ˆ2 million (about $2.26 million) for trailer-mounted mobile batteries. Nomadic Power's mobile batteries, called Nomads, have incorporated photovoltaic systems and can be used to extend the electric driving range of a plug-in vehicle, or to provide backup power to a home. The Nomads use an intelligent energy management system to learn and predict user behavior and manage the solar system based on weather forecasts. "We see a strong future in electric-powered mobility and an increasing use of renewable energy, photovoltaic power in particular," says Nomadic Power CEO Dr. Manfred Baumgaertner. "Our mobile batteries have great potential in these markets that recently got a significant shot in the arm by Tesla's announcements." Read more from Nomadic Power, and at Green Car Congress. Related Gallery 2012 Toyota Prius Plug-In: First Drive View 24 Photos News Source: Green Car Reports, Dalhousie University, Green Car Congress, Nomadic PowerImage Credit: Nomadic Power Government/Legal Green Mazda Subaru Tesla Toyota Technology Electric recharge wrapup