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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

You can buy the last Subaru rally car driven by Colin McRae

Colin McRae continued entertaining the fans for years after retiring from competing full-time in the World Rally Championship – though sadly not for enough of them. His last public appearance was at the 2007 Goodwood Festival of Speed, driving the car you see here to the crowd's delight. And now it could be yours. Though it may look mostly like any ordinary Subaru Impreza WRX STI, this is a full-on S12B rally machine. Petter Solberg drove it for the factory Subaru World Rally Team throughout most of the 2007 World Rally Championship, scoring two podium finishes. That would make it desirable enough as it is, but then McRae drove it up Lord March's front lawn (see the video below) to cement its place in history. It was the last time McRae drove in public before he died in a helicopter crash near his home in Scotland just months later. The vehicle has since been stripped down to its shell and completely rebuilt to showroom condition. It has only put on a little over 200 miles since the engine was rebuilt, and the clutch was replaced just 50 miles ago. It has new seats and harnesses, fire extinguishers, brake discs and pads, the suspension has been fully rebuilt, the wheels powder-coated afresh.... top-notch, in other words. C&M Motors out of Omagh, Northern Ireland, has it listed on RallySales.com with an asking price of GBP159,500 – equivalent to just over $230k at current exchange rates. That would put it in contention as one of the most expensive Subarus we've ever seen, rivaling the $238k which Sports Car Market records as having been paid for another ex-McRae Impreza just this past October. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

There's a 2017 Subaru Impreza hatchback, too

The heart of the new Impreza is the new Subaru Global Platform. It's a unique item, partially because it sees Subaru using terms we don't always associate with affordable C-segment hatchbacks and sedans. Agility – a phrase more often reserved for performance vehicles – is a big part of the new platform. The basic suspension layout hasn't changed dramatically, with struts in front and a double-wishbone setup in back, but Subaru is claiming a 50-percent reduction in body roll. The new platform, meanwhile, promises a 70-percent increase in body rigidity compared to the current car. In short, this should be a much more tossable Impreza. And a turn, a more tossable WRX. We likey. It will also be a more powerful car, too, although only just. The new 2.0-liter flat-four engine has been blessed with direct injection, boosting power up from 148 to 152 ponies. Like we said, only just. Subaru was cagey on transmissions, simply saying that "highline trims" would get a Lineartronic CVT with a seven-speed manual mode. View 11 Photos Like the current Impreza, the updated model will be offered in base, Premium, Sport, and Limited trims. We're taking particular note of the Sport, which gets 18-inch wheels, a unique suspension tune, and active torque vectoring. It should make for an entertaining package, although customers aching for something more comfortable should look to the nicely equipped Limited. The top-end trim adds a power driver's seat, eight-inch touchscreen, push-button start, a Harmon/Kardon stereo, leather upholstery, and 17-inch wheels. Subaru's awesome EyeSight safety system will also be offered, too. The 2017 Impreza goes on sale later this year, following this week's New York Auto Show debut. 2017 Subaru Impreza reveal. autoblog.com/new-york-auto-show Posted by Autoblog on Tuesday, March 22, 2016 Show full PR text SUBARU INTRODUCES ALL-NEW, U.S.-BUILT 2017 IMPREZA®; NEW GLOBAL PLATFORM DELIVERS MAJOR GAINS IN HANDLING PERFORMANCE, CRASH SAFETY AND RIDE COMFORT Sedan and 5-Door Styles New Subaru Global Platform Significantly Enhances Safety, Ride Comfort and Agility Award-Winning EyeSight®, Plus New Driver Assist Technologies SUBARU STARLINK® Safety and Security Features and Apps New Subaru Design Language Debuts 2.0-liter Boxer Engine with Direct Injection and Higher Performance First Impreza to be Built in U.S.