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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 launches STI-tuned Forester tS in Japan

Subaru Tecnica International, better known by its initials, STI, has finally unveiled its work at tuning the Forester into a higher performance machine. Unfortunately while tweaks to the suspension and styling are plentiful, it's not clear how much acceleration is going to improve from just a few minor upgrades to the powertrain. All of the tS models come with a turbocharged, 2.0-liter four-cylinder and continuously variable transmission. STI fits new software to control the engine and gearbox, plus a cooler for the CVT, but Subaru doesn't say what effect this has on overall performance. The Sport Sharp driving mode has also been also retuned in the SI-Drive system. However, the Forester tS should definitely be a better handler with a 0.6-inch (15-mm) drop for the suspension and STI parts for the strut tower brace and rear subframe support. The upgrade to forged 19-inch wheels from BBS and commensurately larger tires should help the CUV stick to the road better, too, and Brembo ventilated brake discs front and rear can bring things to a halt. On the outside, the Forester tS wears some subtle updates with a cherry-red pinstripe running around the front grille and rear bumper. STI also fits a new front and rear spoiler, plus black mirrors provide a little contrast on each side. Inside, there are some new seats up front with a mix of black leather and Ultrasuede with red stitching and matching door panels. We were hoping Subaru might let STI go wild on the Forester to create a higher-riding take on the WRX STI, but that didn't happen. The tS goes on sale in Japan on November 25 and is limited to just 300 units. Prices ring up at 4,027,778 yen before the country's consumption tax ($34,170). Scroll down for all the details about this hotted-up crossover. STI Releases Subaru "Forester tS" in Japan Nov 25,2014 Tokyo, November 25, 2014 - Subaru Tecnica International Inc. (STI)*1 today announced the release of the Subaru "Forester tS", which goes on sale on November 25 through Subaru dealerships in Japan. With a development concept focused on creating an on-road vehicle which has a rugged styling, responsive handling performance and quality feel, the Forester tS offers an enhanced version of the driving performance the Forester provides as an SUV, delivering the ultimate in driving enjoyment and pleasure of ownership. The Forester tS benefits from its own exclusive tuning the "S# (Sport Sharp) mode" for "SI-DRIVE".

Subaru STI display celebrates the division's high-performance history in New York

Subaru Tecnica International is really getting to celebrate itself at the 2015 New York Auto Show. Not only is the Japanese brand's performance division showing off a turbocharged take on the BRZ in the Big Apple, it also set up a small exhibit commemorating four past achievements. The oldest car of the group is a 1996 Subaru Impreza WRX STI Type RA wearing full rally garb. Its 2.0-liter turbocharged boxer four-cylinder kicks out 270 horsepower, but this specific one isn't a competitor. Instead, Subaru used the vehicle to promote the launch of the 1998 Impreza 2.5RS. STI also has one of the most coveted Subarus ever on display, a 1999 Impreza 22B STI. These limited two-door models were made to celebrate the company's World Rally Championship victories. Each one was plucked off the assembly line and fitted with a curvaceous, wider body and adjustable rear wing. Power was provided by a 2.2-liter turbocharged boxer four-cylinder with 280 horsepower. The final two members of this mini museum are a bit more modern. The 2004 WRX STI should be familiar to performance fans in the US with its 300-horsepower boosted 2.5-liter four-cylinder and six-speed manual. There's also the 2015 WRX STI that blitzed the Isle of Man last year to set a new lap record of 19 minutes and 26 seconds around the island course. With STI planning a US expansion over the coming years, this is a fantastic reminder of the division's past. Hopefully, it can keep living up to these high standards. Related Video: