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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 getting creative in these two very different WRX STI viral videos

Subaru is getting into viral videos with two new, radically different shorts to promote the 2015 WRX STI; both are pretty entertaining. They are certainly more interesting, from an enthusiast perspective, than the company's dog-oriented advertising campaign and sponsorship of the Puppy Bowl.
The first promotes a new grindhouse-style short film that Subaru is launching, which is cheekily called The Ride of Her Life, and it previews the full deal due on March 13. While It's just a glimpse at the moment, if Subaru really leans into the cheesy, 1970s-style, then the full video could be really enjoyable.
The second video is a new take on an idea we've seen before but is still very cool. There might be some digital trickery going on in some of the "Stick bomb" shots, but the result is still exciting. Plus, the STI's Nürburgring livery is quite attractive. Scroll down to check them both out and tell us which you prefer in Comments.

2015 Subaru WRX: Road trip to Maine [w/video]

After driving one of the best sport compacts on the market to one of the best-driving-roads states in the Union, who'd have thought that one of my big takeaways would be... great fuel economy? And yet, after putting more than 2,200 miles on our long-term 2015 Subaru WRX, driving from Ann Arbor, MI, to The Great State of Maine and back, my overall fuel consumption figures were almost as baffling as the premium-gasoline prices throughout Canada. In the early part of the now-past autumn, my wife Molly and I were happy to make use of the long-term WRX for our annual road trip from Michigan to Maine. Our goal, as ever, was to fit as much hiking, boating and lobster eating as we could into a one-week span. And, with the sporting Scoobie as our ride this time, I also hoped to spend time bombing down some of my favorite roads through the White Mountains. Anyone that pays attention to the industry knows that New England is a hot spot for Subaru sales, but it turns out that the WRX is just about tailor made for enjoying the best of Maine, too. First up, though – as it was the most surprising to me – is the fuel economy story. I knew going into the trip that I'd log more than two grand on the odometer, but I never expected the returns to be quite so positive as they ended up netting out. My total observed economy over 2,226 miles was 28.38 miles per gallon, or just a fraction better than the EPA estimated highway number of 28 mpg. How'd I do that? My total observed economy over 2,226 miles was 28.38 miles per gallon. Well, for starters, the stretch of Canadian highway between Michigan and Vermont is exceptionally long, flat, straight and dull. Excepting the inevitable traffic around Toronto, the trip is mostly of the "set it and forget it" variety, typically at a cruise of about 72 miles per hour (so as not to attract the Mounties). Doing that haul, I had one tank of premium (15.9 gallon capacity) last for 466 miles, running a trip-best 31.9 mpg. Considering that the Canadian petrol was running me roughly five American bucks per gallon, I appreciated the Subie's newfound frugality. One small issue, tangentially related to fuel, did crop up on the road. The WRX's gas door stopped popping open when I pulled the lever after my second fill up. As it turned out, there is a technical service bulletin out for this very issue, which was looked after as soon as we got back to the States.