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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

Suzuki planning an electric Jimny among EV, hybrid onslaught

Suzuki introduced the larger, five-door Jimny earlier this month, and an investor presentation detailing the automaker's growth strategy to 2030 shows there's more in store. The automaker's mission is to expand its lineup with vehicles that move toward the "realization of a carbon neutral society." This entails Europe, India and Japan receiving five or six new hybrid and/or battery-electric models each. In Europe, the first of Suzuki's five BEVs will show in financial year 2024; when the rollout is complete, it will include an electric Jimny — the silhouette in the upper right. According to Australian outlet Drive, starting from the upper left, the others are a small people-mover, an electric version of the Fronx crossover Suzuki debuted at Auto Expo in India earlier this month, an unknown hatchback, and the retail version of the EVX concept. An electric Jimny would get the dinky 4x4 back to Europe without any classification trickery. The Japanese brand ended export of the regular four-seat model to Europe in 2020 when it could no longer pass EU emissions. It now sends the same model as a two-seat commercial vehicle. Suzuki sells as many as seven models in European markets not including the Jimny, six of them mild hybrids, one a plug-in hybrid. There have been rumors of a hybrid Jimny for a couple of years, and it's predicted the new five-door will get a hybrid option shortly. The investor presentation deck predicted an eventual powertrain ratio in Europe of 80% battery-electric vehicles, 20% hybrid vehicles. We expect that would mean a near overhaul of the European ranges with current models dropping out in favor of hybrids with electric options. What's unexpected is that the battery-electric Jimny silhouette doesn't show on the slides for the Indian or Japanese markets. In Japan, Suzuki expects sales to end up 80% hybrid, 20% EV, the opposite of Europe. The Indian outpost, known as Maruti Suzuki, is the automaker's largest market, and one local outlet said 1,000 shoppers have paid to reserve a spot for the five-door Jimny every day since the truck's debut. The expected powertrain breakdown there is much more varied than the other two regions at 15% battery-electric vehicles, 25% hybrid, and a 60% share of internal combustion made up of a mix of compressed natural gas, biogas, ethanol and "etc." This would definitely be a market for the hybrid Jimny whenever it shows.

Junkyard Gem: 1987 Chevrolet Turbo Sprint

Fifteen years ago, I wrote my first-ever automotive article under the name Murilee Martin, and it didn't take me long to start writing about one of my favorite automotive subjects: the junkyard. Before I'd refined my system for documenting discarded vehicles, however, I shot a lot of boneyard photos that never got used. For today's Junkyard Gem, I have four shots from early 2007 of one of the rarest turbocharged machines of the 1980s: the Chevrolet Turbo Sprint. The Chevrolet Sprint was really a rebadged Suzuki Cultus, from the pre-Geo era when General Motors sold the Isuzu Gemini as the Chevrolet Spectrum, the Daewoo LeMans as the Pontiac LeMans and the Toyota Corolla as the Chevrolet Nova (soon enough, the Spectrum became a Geo, and the Nova became the Prizm). The second-generation Cultus appeared in 1988, becoming the Geo Metro on our shores the following year. The Turbo Sprint was available for just the last two years of the Sprint's 1985-1988 American sales run, and it appears that just a couple of thousand were sold; if I'd known at the time just how rare they were, I'd have shot more photos of this one at the now-defunct Hayward Pick Your Part. The turbocharged 993cc three-cylinder produced 70 horsepower, 22 better than the naturally-aspirated version. Since the Turbo Sprint weighed just 1,620 pounds (that's about 500 pounds lighter than a barely more powerful '22 Mitsusbishi Mirage), it was plenty of fun to drive. For 1988, the regular Sprint hatchback cost $6,380 while the Turbo Sprint listed at $8,240 (that's about $15,375 and $19,855 today, respectively). Believe it or not, a Turbo Sprint actually raced in the 24 Hours of Lemons 10 years ago, though it didn't end well. This ad is for the regular Cultus, not the Cultus Turbo, but the screaming guitars sound reasonably turbocharged. For the most part, Chevy Sprint marketing was all about cheap purchase price and stingy fuel economy… at a time when gasoline prices were cratering. Related Video: