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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 details BRZ tS, stops short of full-on STI

Fans of the sweet-handling Subaru BRZ awaiting some performance enhancements got their hopes up earlier this month when parent Fuji Heavy Industries dropped some teasers hinting at an apparent STI version, but as was subsequently suspected, the model in question - now revealed in full - stops short of being a full-on STI model.
What we're looking at here is the new Subaru BRZ tS, which incorporates a series of enhancements but leaves the engine alone. Available exclusively in the Japanese Domestic Market, the BRZ tS package includes a thicker driveshaft, a front lip spoiler, Brembo ventilated brake discs packed inside 18-inch wheels and a smattering of STI logos inside and out. STI has also upgraded the suspension components, retuned the stability control and exhaust note and enhanced the interior with some carbon and Alcantara touches. An additional GT package includes further upgrades, most noticeably the giant rear wing (made of carbon fiber) shown above, black-painted alloys and Recaro bucket seats.
Only 500 examples of the BRZ tS will be offered in Japan, with no more than 250 of those outfitted with the supplementary GT package. Here's hoping Subaru gives us a taste on this side of the Pacific as well - or better yet, maybe they'll quit joking around and give us the full-on STI already.

Subaru BRZ STI teasers added to Japanese website

Coming Soon. With those two words, Subaru has officially dropped a confirmation bomb on our expectations for a higher performance version of the much-loved BRZ coupe, known, of course, as the Subaru BRZ STI. Two teaser images are being shown on the Japanese web-side home of STI along with the promise of 'coming soon,' and there's also a rather lovely looking set of twisty roads with the words 'Purity of Handling.'
There's not much we can glean from the two teaser images, but we're expecting an aggressive body package to go along with a significant increase in horsepower from the BRZ STI. We're also not totally clear on what 'coming soon' really means - the auto show season will be kicking off in full swing this fall, and we wouldn't be surprised to see a debut in Los Angeles. That said, you'll know more just as soon as we do.