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2014 Subaru Forester XT

Hitting The Mainstream Sweet Spot
The Forester does quite a bit of heavy lifting for Subaru. What was once a plucky little all-wheel-drive utility box has matured into a competitive crossover that accounts for a quarter of the company's total sales in the US. With those numbers continuing to swell even in the third generation's twilight hours, engineers and designers found themselves in the unenviable position of being asked to fix what ain't broke. Rather than reinvent the company's workhorse from the ground up, as we say in our first look at the CUV, Subaru honed the Forester to offer better fuel efficiency, more usable space and a more refined drive.
In doing so, the automaker hopes to toe that delicate line between luring in new devotees to the cult of Pleiades and keeping the brand's longtime fans smiling. While the fourth-generation Forester may have lost some of its trademark pluckiness in the pursuit of a more mainstream existence, there's no denying this is a more sorted vehicle than its predecessors. Make no mistake, the 2014 Forester is keen to carve out a larger chunk of the ever-plumping CUV market for itself, and for the first time in its history, it has the muscle to do so.

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

2015 Subaru WRX priced from $26,295*, STI from $34,495*

As you read these words, we're putting together our full First Drive report on the 2015 Subaru WRX STI. And back in December, we were given our first shot behind the wheel of the wingless 2015 Subaru WRX. Both cars will launch at the same time, hitting dealers this spring, and Subaru has now confirmed that pricing will start at $26,295 for the standard WRX, and $34,495 for the hotter STI, with both models subject to a *$795 for destination fee.
On the WRX, that price gets you a 2.0-liter turbocharged four-cylinder engine good for 268 horsepower and 258 pound-feet of torque, mated to a six-speed manual transmission. There are three trim levels available - base, Premium and Limited - the latter of which will retail for $28,495 and $29,995, respectively. Premium and Limited models are also available with a new continuously variable transmission (it isn't bad - seriously), and the two-pedal setup adds $1,200 to the sedan's bottom line. Premium models add things like heated seats and mirrors, a sunroof, foglamps and a rear spoiler. The high-zoot Limited trim adds leather seating, a power driver's seat and automatic LED headlamps.
And then there's the STI, which, at $34,495, carries the same base price as the previous model. Like the standard WRX, the STI is a sedan-only affair, but boasts extensive chassis and powertrain upgrades (stay tuned for our full drive report next week). Under the hood is a turbocharged, 2.5-liter boxer-four, producing 305 hp and 290 lb-ft of twist, mated exclusively to a six-speed manual transmission.