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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 funds Center For Pet Safety crash testing for dogs [w/video]

Crash-testing new vehicles to evaluate their ability to keep humans safe in accidents is nothing new, but thus far there has been little in the way of crash testing for dogs. Subaru, a company that portrays itself as pet friendly, hopes to raise awareness on the issue of pet safety by funding initial crash testing by the nonprofit Center for Pet Safety, Automotive News reports.
Real dogs were not used in the crash tests; three dummy dogs representing a 25-pound terrier, a 45-pound border collie and a 75-pound golden retriever were used. There are a variety of devices for sale that are supposed to restrain dogs from entering the front-seat area and distracting the driver - tethers, cages, nets and crates - but their effectiveness in a crash is unknown.
In Subaru's crash test, performed at a Virginia laboratory that tests child seats on a device that speeds down a track and stops abruptly, the results show that devices such as dog tethers are prone to break in a crash, sending the dog rocketing into whatever is in front of it. Rather alarmingly, the organization reports a 100-percent failure rate. In other words, "None of the harnesses were deemed safe enough to protect both the dog and the humans in the event of an accident." Yikes.

Subaru confirms performance concept, XV Crosstrek Hybrid for New York

Subaru has made quite a name for itself as automaker that caters to the outdoorsy, green-leaning set. Now it's stepping up to the plate for those customers - some might say "finally" stepping up - with its first-ever hybrid vehicle.
The Subaru XV Crosstrek Hybrid will make its official debut next week at the New York Auto Show. And although there are no details about it just yet, we do have one, typically muddy, picture of the literally and figuratively green car to show.
The XV Crosstrek Hybrid will use a Subaru-developed hybrid system paired to the automaker's Symmetrical All-Wheel Drive system. On the opposite end of the green scale, Subaru will also be showing off an "all-new performance concept car," which we can only hope is our first look at the next-generation WRX, or better still the WRX STI. Here's hoping.