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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

Man posts dashcam video of epic crash over cliff

YouTube user TurboFoz uploaded dashboard camera footage Monday of a terrifying crash that occurred last year as he was driving the popular Angeles Crest Highway in California. Last January, TurboFoz was zipping through the San Gabriel Mountains in his 2004 Subaru Forester XT. The engine sound was so alluring, TurboFoz opened up his Forester in the tunnels that dot the scenic highway for the full effect. "As an auto enthusiast, when you have a nice relatively fast car with a loud exhaust you tend to like tunnels," he wrote. "They make your exhaust sound that much better, sort of like singing in the shower." What he didn't know was that the road curved sharply just outside of one of these tunnels. A bystander tried to wave him down, but TurboFoz wasn't sure why the man was signaling to him. It was only when he saw the angle of the road up ahead that he realized the man was trying to tell him to slow down. He applied the brakes, but it was too late. The Subaru slid across the road and tumbled off the cliff. He rolled several times before coming to rest on a large drainage pipe jutting from the steep mountainside. If it wasn't for that small ledge on the sheer cliff the accident could have been much worse. "It was the only horizontally level piece on an extremely steep sloped hill," he wrote. "Had I spun off a few feet before or after, I'd be dead. TurboFoz says driving too fast on an unfamiliar road cost him his beloved Subaru and almost his life. Luckily TurboFoz was unhurt, but unluckily his beloved Forester was a total loss. TurboFoz hopes he can save other enthusiasts from the same, or worse, fate. "This is a reminder to be safe, pay attention and KNOW THE ROAD before you try to have "fun" on it," he said. "I failed on all 3 of those accounts and it nearly cost me my life. I've more than learned my lesson and would hope some others do by my example." News Source: YouTube Subaru Driving Ownership Safety Autoblog Minute Videos

Prodrive builds new Isle of Man Subaru for record attempt

Prodrive have released photos of their new weapon for the Isle of Man TT Course. The three-time British Rally Champion Mark Higgins has set a number of records driving a Subaru on the famed Manx course throughout the years, and this time Subaru Technica International and Higgins are teaming up with Prodrive. Prodrive are famous for building Subaru's rally cars in the past, from 1990 to 2008, so the joining of forces gives the Isle of Man TT car an extra helping of motorsport magic. These days, Prodrive is also known for rally-prepared Minis and for building Aston Martin racing cars. They've had their share in giving UK-specification customer cars more power as well, along with creating a one-off, Subaru-based P2 sportscar to showcase their engineering skills and close ties with the Japanese manufacturer. This year's motorcycle event takes place on the treacherous 37-mile circuit in the end of May and early June. Past years' record drives have been especially memorable, and Higgins has been at it since 2011, first dipping under 20 minutes with a 19-minute, 56.7-second run five years ago – besting Tony Pond's 1990 laptime by over two minutes. The latest time for Higgins is 19 minutes and 15 seconds, so it will be interesting to see if the new car does it in less than 19 minutes. Related Video: Featured Gallery Subaru Prodrive Isle of Man Motorsports Subaru Racing Vehicles isle of man tt mark higgins road racing