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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

Toyota GT86 convertible on 'indefinite hold'

Bad news, sportscar fans. According to a new report from What Car?, Toyota has cancelled plans to produce a GT86 convertible, a model based on the FT-86 Open Concept that debuted at the 2013 Geneva Motor Show. In truth, Toyota never actually confirmed it would produce the budget-friendly droptop in the first place, but rumors have been flying since last year and Toyota reportedly showed its embattled Scion dealers a FR-S version of the convertible in August. Presumably, this means that a lidless variant of the Subaru BRZ is not in the cards, either.
The reason for the move is unknown, though What Car? reports "one possible cause is weight; Toyota did say that further work would be required on rigidity before the convertible could be launched, and that could have added extra bulk that conflict with the regular GT86's ethos of light weight and agile handling." It doesn't look like that work will happen anytime soon, as "sources now say that the car has now been delayed indefinitely, with no place in Toyota's product plan in either 2014 or 2015." Still holding out hope? What Car? says the project could be "fast-tracked" if management decides it wants to reboot the program down the road.
one possible cause is weight; Toyota did say that further work would be required on rigidity before the convertible could be launched, and that could have added extra bulk that conflict with the regular GT86's ethos of light weight and agile handling. - See more at: http://www.whatcar.com/car-news/toyota-gt86-cabriolet-cancelled/1214782#sthash.iStIkWnz.dpuf

Upcoming Subaru WRX STI rumored to get hybrid drivetrain

Subaru might electrify the next-gen WRX STI. According to a rumor from Motoring in Australia citing an unnamed Subie insider, the brand's engineers reportedly have two hybrid systems under development for the future model. The move would allow the STI to boost power output and improve fuel economy and lower emissions to keep up with US regulations. According to Motoring's speculation, the next STI might use an electric motor at the back to power the rear axle and an upgraded version of the FA20 turbocharged 2.0-liter at the front. A new dual-clutch six-speed gearbox would help the power get to the road, and the total system could allegedly offer around 322 horsepower versus 305 hp from the current US model. This rumor also claims the next-gen STI would continue as a sedan when it arrives in 2017. Like previous iterations, the four-door will share underpinnings with the Impreza, which will mean a move to Subaru's new modular platform. The standard hybrid might only be the beginning of electrification for the future STI. Motoring's source also claims the company has a plug-in hybrid variant under development, but it might not debut until the 2018 Tokyo Motor Show. A hybrid STI could be exciting, but until there are solid facts, this rumor joins a long history of powertrain speculation about the high-performance Subaru. In 2008 and 2010, reports emerged about a diesel version, but it never appeared. We once even heard that the current-gen WRX might boast an electric turbo.