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Toyota to offer sedan version of GT 86?

Sources in Australia are reporting that we'll be seeing a small, rear-drive sedan from Toyota, based on the GT 86/Scion FR-S. Yes, a convertible variant is still in limbo, but a four-door sedan is in the works. It's unclear if the rumored GT 86 sedan would spawn Scion and Subaru variants (it's hard to cross all ten fingers while you type, but we're having a go).
Working with remarks made by the car's chief engineer Tetsuya Tada in his blog and a rendering from Japanese magazine Holiday Auto, the Australian site Motoring is claiming that the new model's wheelbase will grow about four inches over the current GT 86's 101.2-inch wheelbase.
Besides the larger overall space between the axles, the sedan will offer a more potent engine option over the current 2.0-liter, flat-four. Promising 268 horsepower, which is a big jump over the current car's 200 ponies, the new powertrain will be derived from the Hybrid R setup, shown at the Frankfurt Motor Show. If, like us, you're reaching for the salt, and we don't blame you.

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 confirms new Outback to debut in New York

Performance enthusiasts may think of the WRX and BRZ when the name Subaru comes to mind, but for many others, the brand is best associated with the Outback. The soft-road version of the Legacy (and the Impreza-based Outback Sport that preceded the XV Crosstrek) is a vital product for the Japanese automaker, which has now confirmed it's bringing the latest version to the New York Auto Show in just a couple of weeks from now. There's little to go on from the teaser image above (which you can click to enlarge) and the press release below, which says only that "The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability." And that much we knew already. It's safe to assume that, like previous versions of the Outback, the new model (which we recently spied undergoing testing) will be based closely on the latest Legacy, albeit upgraded with a higher ride height, lower body cladding and other off-roading enhancements. Watch this space for more. All-New Subaru "Outback" to Make World Debut at 2014 New York International Auto Show Tokyo, April 3, 2014 – Fuji Heavy Industries Ltd. (FHI), the maker of Subaru automobiles, today announced that the all-new "Outback" (US specifications model) will make its world debut at the 2014 New York International Auto Show (Press day: April 16 and 17; Open to the public from April 18 through 27, 2014). The Outback will be unveiled at the press briefing scheduled for 10:55 AM EST on April 17 at Subaru booth following a speech to be made by FHI President & CEO, Yasuyuki Yoshinaga. The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability. The special site opens today at 22:00 (Japan time) on the Subaru Global Site. http://www.subaru-global.com/2014ny.html The site will feature information updates relating to the New York International Auto Show including Subaru's press conference.