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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 Jimny gets confused by American guardrails

The reborn Suzuki Jimny 4x4 has faced some crosswinds in the time it's been on the market: It earned only three stars in its Euro NCAP test due to a badly-inflating driver airbag and troubles with pedestrian protection. The automatic emergency braking function also had some issues in NCAP testing, but now the Jimny's AEB system is facing an another problem — it appears to be confused by guardrails. Two German-market Jimnys had been shipped to Los Angeles for the World Car of the Year testing, Australian journalists found that on some corners of the California test route, the AEB was seemingly triggered by a guardrail in a curve in the road. The problem was found with both Jimnys, and Suzuki's Jimny chief engineer was present to look into the matter; later, Suzuki engineers were able to replicate the glitch with these particular vehicles on the same road. While U.S. sales of the Jimny are extremely unlikely, test data acquired on American roads still seems to be highly valuable for Suzuki, as tests in Japan could not replicate the problem. It appears the road condition, tilt angle, curve aspects and vehicle speed all conspired to puzzle the AEB system, which is now being evaluated for a software or calibration change. The jerky correction by the electronic stability program, audible on the CarAdvice video, happened at 45-55 mph, which is not overly fast for even the narrow and tall Jimny — it is possible that the AEB mistook the guardrail for another car. Suzuki stated: "There is a possibility that the (stability control) is instantaneously switched on (by) reacting to the vehicle sway when departing the S-shaped curve — and then consecutively switches on because the vehicle is circling the curve at high speeds. [...] The intervention of the stability control may give a sense of discomfort to the driver but is not an event that would disturb the vehicle's direction of movement." The driver safety assists are a good addition to the Jimny, of course, given that the 1980s second-generation truck was the subject of a beef between Consumer Reports and Suzuki North America due to its reported tippiness in corners. Related Video:

Suzuki Jimny four-door caught in new spy photos

Modern car buyers really seem to have moved on from two-door vehicles. First coupes of all kinds disappeared, and now traditionally two-door SUVs have sprouted extra pairs of doors (see Wrangler and Bronco). The latest to join the trend is the tiny Suzuki Jimny, which has been spotted in Europe with four doors. This more practical Jimny also has grown in length to accommodate its extra doors. Interestingly, the front pair appear to be the same size as those on the two-door model. The rear doors are a fair bit smaller. Still, access to the back should be easier than on the shorter model, and both leg and cargo room should be substantially improved. It also retains the very short overhangs, which is good for approach and departure angles, but the longer wheelbase will mean it can be high-centered more easily than its shorter counterpart. Jimnys in the past have been available with a small amount of body variety. For a long time, it was available as a convertible, and some long wheelbase variants were produced. Aftermarket companies have also made their own changes to the SUV's shape. But four full doors from the factory seems to be a new step for the Jimny. Also, the fact that it's testing in Europe with left-hand drive suggests it will be a model offered in global markets, and not just in Japan. Sadly, it will still not come to the U.S. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.