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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 teasing new WRX S4 model ahead of Japanese debut

The Subaru WRX range is growing just a little bit larger, at least in Japan, with the automaker's teasing announcement of a new version called the S4. Unfortunately, the company is keeping details about its latest all-wheel drive sport sedan a closely guarded secret for the moment.
From what we can glean, it appears that the S4 might be a more luxurious take on the WRX. According to the release, the name stands for the four qualities that Subaru wants the sedan to have: "'Sports performance', 'Safety performance', 'Smart driving' and 'Sophisticated feel.'" As part of this focus, the car comes with the company's EyeSight camera system. Thankfully, we don't have too long to wait to find out what all of the buzz words actually mean because Subaru is unveiling the S4 on August 25 in Japan.
The automaker also launched a teaser website for the S4 that you can cheek out, here, but at the moment it doesn't provide any more details about the new sport sedan. The site just has countdown until the August reveal. There's also no indication yet whether this potentially more premium WRX could make it US shores. Scroll down to read the Subaru's rather concise teaser for the upcoming S4.

2015 Subaru Legacy to start at $21,695*

Subaru unveiled the 2015 Legacy at this year's Chicago Auto Show, and while the company was happy to tell us all about its new platform and features, it kept pricing a secret until now. The new all-wheel drive sedan arrives at dealers this summer with a starting price of $22,490, which includes its $795 destination charge, a $400 increase over last year's model with the CVT.
The Legacy takes advantage of a slightly larger, new platform, which Subaru claims is quieter. The 2.5-liter boxer-four-cylinder and 3.6-liter flat-six engines are carried over from the previous generation, but they see slight boosts in fuel economy. All models also now come standard with a CVT, and, of course, Subaru's Symmetrical All-Wheel Drive.
The range starts with the basic 2.5i trim at $22,490 that comes standard with more airbags than before and a 6.2-inch infotainment system with Bluetooth and iPod integration. The $24,290 2.5i Premium trim really improves things with standard dual-zone climate control, power driver's seat, leather-wrapped steering wheel, a 7-inch infotainment system and more. For $27,290, the 2.5i Limited adds a leather interior, 18-inch wheels, a Harmon/Kardon stereo, heated rear seats, fog lights, wood grain trim and more. A top-spec Legacy 3.6R Limited goes for $30,390 and comes with standard HID low beams.