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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

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

2015 Subaru Forester tS Quick Spin

When Subaru invited me to Japan and the famed Suzuka racing circuit to drive its BRZ tS, there was more on the menu than sporting coupes. The STI buffet also included the Subaru Forester tS. If you caught my BRZ tS review, the Forester follows the same idea: modified for better, more precise handling but without any increase in power. As I shared in the first tS review, and with Subaru's news at the New York Auto Show, the company plans to increase the awareness of Subaru Tecnica International – STI – over the next five years. In the case of the BRZ tS, a similarly-conceived car is coming to the US in the next few years. Such is not the story with the Forester tS. The JDM-only product was on hand to drive as further proof of what STI can do, but not as a preview to an upcoming model for sale in America. Subaru execs wouldn't go so far as to rule the idea out completely, but there was plenty of wink-nudging admitting the limited market for something like the Forester tS over here. Firmly ensconced in the "forbidden fruit" category, then, I still thought it'd be fun to report on the hot-ish, wagon-ish Forester. This one's for the other car nerds like me. Driving Notes So, what's new on this tS? Basically STI made the Forester stickier and less prone to roll under high cornering load. The same type of flexible tower brace previously found under the hood of the WRX is used here, and "flexible draw stiffeners" connect the body to the front and rear subframes for added body stiffness. The braces incorporate a very strong coil spring, and add lateral stiffness with enough give to allow the tires to stay in perfect contact with the road surface. The tires in question are 245-section Bridgestones, riding on attractive 19-inch STI wheels, both increases from the 225-section tires and 18-inch wheels that come standard in the US on the Forester 2.0XT model. The tS also has a more-powerful Brembo braking package; handy when hauling a 3,600-pound vehicle down from straightaway speeds. Subaru benchmarked the tS versus other 'sporty' SUVs and CUVs, including out and out performance variants. (Japanese professional modesty prevented Subaru reps from naming specific names, but suffice it to say that the Germans were involved.) In terms of roll rates, yaw response, slalom time, g-force and more, the Subaru's tS package shows massive improvements versus the standard Forester, and holds up to the competitive targets too.