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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...

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

The refreshed 2018 Subaru WRX starts at $27,855

Subaru has always staggered the release of new versions of the WRX and STI performance twins from that of the more pedestrian Imprezas. While the latter just received a ground-up redesign for 2017, the once and future kings of all-wheel-drive performance sedans make do with some new options and massaged over styling. Pricing for the new cars, which go on sale sometime in the next few months, has finally been announced. Pricing for the pair is on the high-side of the competition. The 2018 Subaru WRX starts at $27,855. That nets you a 2.0-liter turbocharged boxer four-cylinder making 268 horsepower, a six-speed manual, and Subaru's symmetrical all-wheel drive with torque vectoring. For comparison, the Ford Focus ST starts at $25,650 while the Volkswagen GTI starts at $26,415. Pricing for the new Honda Civic Si hasn't been announced, but expect it to be somewhere in the mid $20,000 range. Stepping up to the STI will set you back at least $36,955, though you get a more powerful 305-horsepower 2.5-liter turbocharged boxer four and a more advanced version of Subaru's all-wheel-drive system. Plus, you get the big rear wing, and that's worth it's weight in Mitsubishi Lancer Evolution owner tears. The far more powerful Ford Focus RS meets the STI dollar for dollar at $36,955 while the Volkswagen Golf R retails for an eye-watering $40,195. Like the Civic Si, pricing for the Civic Type R has yet to be revealed. Both the WRX and STI get updated styling on the front bumper, with larger grilles and new black trim. Additionally, the $32,455 WRX Limited and all STI models feature new LED headlights. The STI also gets new 19-inch wheels and upgraded Brembo brakes. The WRX Premium has an optional $2,050 performance pack that adds Recaro seats with an 8-way power driver's seat, red-painted brake calipers with Jurid brake pads, and deletes the moonroof to reduce weight. Other changes include the latest version of Subaru's Starlink infotainment system, a larger infotainment screen, new EyeSight driver assist features (only on CVT-equipped WRX models), upgraded sound deadening, and upgraded interior materials. Both models receive new roof rack mounting brackets. Look for the 2018 Subaru WRX and 2018 Subaru STI to hit showrooms in the next few months. Related Video: