1997 Subaru Legacy L Sedan 4-door 2.2l on 2040-cars

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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

Is Subaru close to ditching 6-cylinder engines?

Despite niche outliers like the 6.2-liter supercharged Hellcat V8 and 7.0-liter V8 in the Chevrolet Camaro Z/28, we live in an era where small-displacement, turbocharged engines are becoming the norm. In many model lineups, a boosted four-cylinder now holds the place that a six might have just a few short years ago. At least in some markets, Subaru could be the next automaker to follow this path by axing its 3.6-liter boxer six-cylinder. Granted, that's not as much of a leap for Subie as some other automakers because the Japanese brand is already closely associated with turbocharged four-cylinder engines. The company's six-pot boxer is currently only offered in the Legacy and Outback in the US. Australian website CarAdvice spoke with Subaru deputy general manager of engineering Yoichi Hori about the company's future powertrain plans at least for Down Under. "Our research said the six-cylinder model is decreasing in the world. So that's why probably the future, many companies take the smaller displacement with a turbocharger, or diesel, or hybrid," said Hori to CarAdvice. He was also specific about which engine he had in mind. "In terms of the body size, a 2.0-liter with a turbocharger is enough, I think," he said. Hori said that the automaker stuck with the boxer-six for so long because of the turbocharged four-cylinder's higher maintenance costs. Slotting Subaru's 2.0-liter turbocharged boxer four-cylinder into the Legacy and Outback seems easy to imagine. After all, the mill already does duty in different tunes in the Forester and WRX in the US. Keep in mind, though, that Hori's words are aimed at the Aussie market. A rumor from earlier this year speculated the company's midsize models might get a smaller displacement six and the turbo four for some trims. Featured Gallery 2015 Subaru Legacy: First Drive View 35 Photos News Source: CarAdviceImage Credit: Copyright 2014 Jeremy Korzeniewski / AOL Green Subaru Wagon Sedan turbocharging

Subaru revisits 1998 Impreza 22B STI

It was 1998 when Subaru made some crucial changes to its World Rally Championship Impreza, such as increasing the displacement of the turbocharged flat-four-cylinder engine from 2.0 to 2.2 liters and fitting wide fender flares. Subaru won the WRC manufacturer championship with the car that year, and it also was the year of the automaker's 40th anniversary. To celebrate the milestone, the company came out with this limited-edition, road-going Impreza, the hallowed 22B STI, which looked nearly identical to the rally car.
Only 424 22Bs were built, and most of them stayed in Japan. But Dominick Infante, national manager of product communications at Subaru of America, was able to secure a drive in one of the only two 22Bs in the US. He details the car's history and some of the design and engineering cues that made the Impreza STI so popular both in motorsport and on the street, but we were caught up listening to the exhaust and admiring the timeless blue-and-gold paint. You should too, so head below to watch the video.