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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 confirms 2015 WRX STI to grace Detroit show stand

Now that we've seen and driven the 2015 Subaru WRX, it's time to set our sights on the car's more powerful and traditionally massively winged counterpart: the STI. And while a few rumors about the new STI have already leaked, Subaru today confirmed that we'll be seeing the hotter 'Rex at the Detroit Auto Show later this month. Hot diggity.
Last we heard, the new STI will still use a turbocharged, 2.5-liter boxer-four (remember, the standard WRX uses a version of the 2.0-liter engine found in the Forester) producing something like 300 horsepower and 290 pound-feet of torque. What's more, don't expect the STI to hatch a five-door variant - Subaru recently told us that there are no plans to offer anything beyond a sedan bodystyle for both versions of the WRX. Sad trombone, we know.
That said, if our time with the 2015 WRX sedan is anything to go by, this new STI should be pretty rad. The new WRX is significantly sharper than the outgoing model (in terms of driving dynamics, anyway - it's still a pretty ugly little thing), and we fully expect the STI to be a bulgier, harsher, more powerful and aggressive version of the already awesome street-legal rally car. We're just hoping it will be offered with WRC-correct gold wheels, too.

Subaru Levorg Concept has us dreaming about a WRX wagon

We're not sure what got in the water supply of Subaru's Tokyo Motor Show team, but we like the results. After checking out the Cross Sport Design Concept, which we would love to see as a BRZ shooting brake, Subaru took the wraps off its Levorg Concept. Naming convention aside, the idea of a sport-tuned wagon with a boxer engine is music to our ears.
The design language fits in with recent Subaru products, and the Levorg's face is very similar to the 2015 WRX that was just unveiled across the Pacific Ocean at the LA Auto Show. In terms of its size, though, this concept is roughly the same as the current Outback, only it sits about five inches lower. Power comes from either of a pair of boxer engines: a fuel-efficient 1.6-liter or a 296-horsepower, 2.0-liter. Both engines would be paired to Subaru's Symmetrical all-wheel-drive system.
Subaru says that the Levorg is a thinly veiled version of the production sports tourer that will go on sale (likely in Japan and/or Europe) next spring. Could this mean we could soon see a sporty Legacy wagon in the US? We can only hope. More details about the Levorg are posted in the press release found below.