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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's three-row Tribeca replacement spotted testing with Explorer and CX-9 in tow

Despite being a roomy, midsize crossover with seven seats living in a market that's mad for the genre, Subaru had a difficult time selling the Tribeca. Subie's largest automobile was one of the worst selling vehicles of 2012, which surely led to its death in 2014. The latest spy shots of Subaru's new three-row crossover reveals that the automaker is finally ready to replace the Tribeca. Our photographers managed to capture photos of Subaru's upcoming three-row crossover testing with the Ford Explorer and Mazda CX-9. The heavily disguised model doesn't appear drastically different than the dead Tribeca, but thick cladding is hiding the majority of the vehicle's features. From the front, the CUV looks to have similar triangular headlights as the old Tribeca, but have been given a sharper design. The front grille closely resembles the one found on the current Subaru Outback with three horizontal slats. The large air intake toward the bottom of the front fascia is also similar to the Outback's. The overall profile of the 'ute indicates that the new crossover will be similarly sized to the now-dead Tribeca, current Explorer, and present-day CX-9. At the back, the crossover features square taillights that are comparable to the ones found on the Forester's LED units. The prototype's dual exhaust outlets hint toward Subaru's 3.6-liter six-cylinder Boxer engine. The new seven-seater is expected to utilize Subaru's new modular architecture that will underpin the majority of the automaker's lineup. While the Tribeca was larger than its competitors, the previous model, as we pointed out in our review, had polarizing styling and a subpar interior that held the machine back. The Tribeca's replacement, which is expected to debut in 2018, should fix the previous car's issues with a rugged, sleeker exterior design and a more luxurious interior. Related Video: Featured Gallery 2019 Subaru Three-Row SUV View 16 Photos Image Credit: KGP Photography Spy Photos Subaru Crossover SUV subaru tribeca three-row three-row cuv

Watch Mark Higgins whomp the Isle of Man TT course in a 2015 WRX STI

Subaru has made another trip to the infamous Isle of Man TT, bringing along its all-new 2015 Subaru WRX STI. The goal? Best the already impressive time set by rally ace Mark Higgins and the 2011 Impreza WRX STI on the same swirling, high-paced ribbon of tarmac. Of course, you already know how that went.
What we didn't know when the story first broke, though, was that Subaru was monitoring data. Specifically, Higgins' data. He was fitted with a monitor that would record his heart rate, breaths, skin temperature and the g forces he was faced with as he lapped the 37-plus-mile road course. While Higgins and Co. were aiming to best their 2011 time (19:56.7), this year's effort also saw a push to beat the time of the sidecar racers.
You can get a recap of the entire event, with plenty of footage and data from Higgins' lap in the exhilarating video below. Take a look.