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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

Scion FR-S Convertible (in Toyota GT86 form) spied in South Africa

Though the eventual existence of a convertible version of the Toyota GT86 (and its Scion FR-S and Subaru BRZ versions for America) is a no-brainer, we've yet to get a glimpse of the real-deal car until now.
Spotted in Cape Town, South Africa, of all places, this completely undisguised GT86 convertible seems to be in a remarkably advanced state of development. The image seen here was obviously sniped from quite a distance and without the aid of a powerful lens, but we can still make out a production-ready looking piece of rear bodywork for the convertible top to hide away in, as well as a functioning trunk lid. It's hard to make out with any certainty, based on this evidence, but there does seem to be space retained behind the front seats for two, small rear chairs.
With the first car spotted, we'd expect to seem some more and better images of it flow through in the near future, and if not, Toyota has already confirmed a concept version for next month's Geneva Motor Show, dubbed FT-86 Open, so stay tuned. For now, click through to the FT86Club.com forum to have a slightly closer look at the images.

Subaru partners with Magellan for smartphone-based navigation

With tech in the air this week at the Consumer Electronics Show, Subaru announced that it named Magellan SmartGPS as its mapping partner in future Subaru vehicles – without putting an exact date on when that "future" will be. The appointment means that Magellan's smartphone-based cloud navigation, which works on both Apple iOS and Android, will port fully voice-guided navigation using constantly updated maps to the head unit in the car. Magellan already sells a standalone SmartGPS unit that you can buy from major retailers, and it can communicate with other wireless devices to find destinations and transfer directions. However, with the rise of smartphones and with major tech players becoming baked-in fixtures inside vehicles, the sales of portable navigation devices have gone into freefall - from 15.1 million units in 2008 to around 4.3 million units in 2019. The deal with Subaru helps Magellan continue to focus on its core strength. The caveat is that your car will need to have the Subaru Starlink system. It is included in some of the brand's vehicles, like the Impreza and the Crosstrek. On others it is a cost option - it's part of a $1,795 package on the Legacy, a $2,295 package on the Outback. The press release below can tell you more. Subaru Names Magellan Its Smartphone-based Cloud Navigation Partner Magellan SmartGPS Navigation to Power Future Subaru Vehicles Equipped with the SUBARU STARLINK Platform Powered by Clarion's Smart Access System Las Vegas, NV – January 4, 2016 – Magellan's SmartGPS navigation has been selected to be included with Subaru vehicles featuring the SUBARU STARLINK platform. The SUBARU STARLINK infotainment systems, available in Subaru vehicles, utilize Clarion's advanced Smart Access™ cloud connectivity platform to seamlessly sync and control cloud-based applications directly through the infotainment system's screen, providing immediate access to Magellan's SmartGPS navigation. Designed to support both Apple iOS and Android smartphones, the SUBARU STARLINK app brings continuously updated cloud applications to the vehicle's center stack display. Drivers can then access all STARLINK approved apps and services effortlessly, including Magellan's SmartGPS, allowing for safe access and display on the vehicle's touch panel. Magellan SmartGPS navigation will be available on future Subaru models.