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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

2014 Subaru XV Crosstrek Hybrid [w/video]

The butler announcing arriving guests to the hybrid party has just called Subaru's name, at long last. The XV Crosstrek wasn't even supposed to come to the US, but the 2014 XV Crosstrek Hybrid endows it with a suit tailored for our regulatory dress code, adding all that weighty battery goodness to the Impreza-turned-compact-crossover.
Subaru didn't want to say why it sent the XV Crosstrek to the hybrid party first, but the original car itself was an opportunistic play for the European market that has worked out surprisingly well over there and over here. In areas represented by the American flag it's doing about 4,000 sales per month and on pace to hit 50,000 units for all of 2013; that's just another happy chapter in Subaru's generally awesome year that sees it outpacing Volkswagen through the end of October, 347,890 units to 342,962.
The XV Crosstrek Hybrid is the opportunistic play for the 25 percent of Subaru buyers that will be looking for a hybrid as their next vehicle, so sayeth Subaru, and for those outside the fold who are determined to include the word "hybrid" in their purchase but also want some extra ride height, space and all-wheel drive.

Subaru weighing Outback vs Forester approach for seven-seater

Subaru is gearing up for a return to the seven-seat crossover segment, and it's focusing the new model on the US market, but just which approach it will take has yet to be decided. One possibility, according to Automotive News, would be to position it as a larger counterpart to the Outback wagon, with rugged off-road styling. The other would be to sell it as a big brother to the Forester, with cleaner styling. One thing Subaru most definitely does not want to repeat is the Tribeca fiasco, so we wouldn't expect the new model to carry that same nameplate. Introduced in 2006, the Tribeca's divisive front-end styling kept it from being a serious player, and it underwent a facelift only two years later. It was withdrawn from the market altogether after 2014. The company had targeted moving 36,000 units of the Tribeca each year, but sold fewer than 2,800 in America in 2011, barely over 2,000 in 2012, less than 1,600 in 2013 and just a few hundred in 2014. The new seven-seat crossover will go after the likes of the Toyota Highlander, Nissan Pathfinder and new Honda Pilot among three-row Japanese crossovers. Like those rivals, it will be built in the US for the US market – namely at Subaru's assembly plant in Indiana, the same state where the Highlander is produced. The new crossover's arrival will, according to reports, mean that the Levorg wagon offered in Japan and Europe won't be offered Stateside. Related Video: