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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 WRX hatchback back off the table

It's fair to see we're rather fond of the new Subaru WRX. That's not to say we don't have a number of issues with the budget sports sedan, though. Foremost among those complaints is that it's short exactly one door. Yes, the sedan-only WRX is just fine, but we'd be lying if we said we weren't missing the long-roofed, five-door model of years past. More pressing than our sentimentality, though, is the business case for a WRX wagon - half of the 2013 WRX and STI models sold had five doors. As a general rule, ignoring half of your former customers isn't the best strategy for long-term success. There was some hope, as recently as a few weeks ago, though, that Subaru would right this wrong and offer a real, five-door WRX. An Australian reporter managed to corner project manager Masuo Takatsu, who said strong interest from the US meant that the Subaru mothership was considering a WRX with a hatch rather than a trunk. Sadly, that doesn't seem to be the case, as Subaru USA is dashing any and all hope of a second body style. According to Motor Trend, the company's US arm reached out to Japan and, despite the statements made by Takatsu, confirmed that there were no plans for a WRX wagon. Sigh...

Editors' Picks, May 2023: Some Subarus and a pair of luxury SUVs

The month of May saw a number of new vehicles jump into the pool of Editors' Picks. Subaru grabbed a pair with its brand-new generation of Crosstrek for 2024, and the Legacy earns one in the ever-shrinking midsize sedan segment. In the luxury space, we have one entry from Britain and one from here at home. The new Range Rover already got an Editors' Pick, but now the Range Rover Sport joins the ranks. The Corsair earned Editors' Pick status before its update, too, but now the refreshed version rejoins the ranks. In case you missed our previous Editors' Picks posts, here’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get an EditorsÂ’ Pick designation. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in May that earned an EditorsÂ’ Pick. 2023 Subaru Legacy 2023 Subaru Legacy View 15 Photos Quick take: The Legacy brings all-wheel drive with sedan dynamics to a shrinking segment, and it does so with a competitive price, respectable tech and tons of utility. Score: 7.5 What it competes with: Honda Accord, Nissan Altima, Toyota Camry, Hyundai Sonata, Kia K5 Pros: All-wheel drive in every trim, spunky turbo engine, tons of space in the rear and trunk Cons: CVT makes for a dull drive, infotainment is clunky, styling is on the bland side From the editors: Associate Editor Byron Hurd — "Not everybody has abandoned sedans. Not only is Subaru keeping some of its eggs in this four-door basket, but it's dyeing them in some festive shades. The new turbocharged and tightened Sport model makes a great case for itself as a grown-up WRX without all the GT-themed nonsense. Shame about the CVT." In-depth analysis: 2023 Subaru Legacy gets Sport trim, more tech, fresh design   2023 Range Rover Sport Quick take: It may not be outwardly sporty, but the Range Rover Sport has a killer design, gorgeous interior, buttery-smooth driving characteristics and a clean tech interface.