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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

Plans for 7-seat Subaru Tribeca replacement becoming clearer

Subaru is going to have its hands full at the Tokyo Motor Show next week, but while the Cross Sport Design Concept is expected to preview a Tribeca-replacing crossover, this new model could still be at least two years from production. It has already been confirmed that production of the Tribeca will end early next year, but in speaking with Yasuyuki Yoshinaga, the president of Subaru's parent Fuji Heavy Industries, Automotive News is reporting that there will be a lengthy gap between the Tribeca and its eventual replacement.
The next-gen three-row crossover wasn't included in an annual production capacity goal of 500,000 units expected in the US by the end of 2016, so it's likely that we won't see this much-needed CUV until 2017. While the details of this new model aren't known, Yoshinaga told AN that it will be "completely different" from the Tribeca. As we heard back in February, we do expect this seven-passenger crossover to grow in size in order to offer a larger cabin with more third-row space.
Automotive News even mentions that the Tribeca replacement could be based on the existing Subaru Exiga from the Japanese market. That three-row vehicle splits the difference between a minivan and wagon, with swinging doors instead of sliders, and a tall greenhouse.

2015 Subaru WRX: Introduction

"As far as street-legal rally cars go, there's still nothing better than a WRX." I wrote that line following my first drive of the 2015 Subaru WRX late last year - one of the better motoring experiences I had in 2013. Sure, a particularly involving drive route helped, but I don't want to sell the new Subaru short: it's a seriously good car - easily one of the sharpest, best-driving little turbos available today.
When I drove the even hotter 2015 WRX STI in January, it was a similar love-fest. The STI is infused with all of the WRX's greatness, but it's sharper, meaner, and on good roads (and race tracks), the winged wonder is really outstanding. But because of its higher price tag, less forgiving suspension tuning, and only marginal performance increases, I'm convinced that the STI isn't the best WRX for the money. And much as I love it, I just don't think I'd ever buy the STI over its more sedate sister (though I totally understand why others might).
So when it came time to add a new long-term car to the Autoblog fleet, many votes were cast in favor of the WRX. There was a lot of debate about whether or not to get the standard version, or the mightier STI. But at the end of the day, my argument that the basic WRX is the better daily driver - nee, one of the best all-around, all-weather performers money can buy - carried the day.