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Cheap, honest transportation | 2017 Toyota Yaris iA

In The Love Bug, the main character (aside from Herbie) is a down-on-his-luck racing driver named Jim Douglas. Early on, he steps into an exotic car show room, and when the dealer asks him kind of car he's looking for, Douglas replies, "What do you have in the way of cheap, honest transportation?" The dealer quickly snatches his fancy liquor back from Douglas and soon after Herbie shows up from the back of the showroom. But if this happened today, you could easily replace the classic Beetle with a 2017 Toyota Yaris iA. The poor thing isn't nearly as endearing to look at as a classic Bug, as a result of the rather unattractive nose, and it's now using a second pseudonym (first Scion iA, then Toyota Yaris iA) to hide its Mazda heritage. However, everything else about it nails the description of cheap, honest transportation. And for that reason, it's a lovely little car. Let's start with honesty, and it begins from the minute you start equipping the car – the iA is a "what you see is what you get" proposition. You see, the iA moniker isn't the only holdover from the Scion era. The Toyota Yaris iA retains its "monospec" configuration, which means it comes with only one option: the transmission. Customers can choose from either a 6-speed manual like our test car, or a 6-speed automatic which costs $1,100. Everything else is standard, and "everything" includes some choice features. You get alloy wheels, air conditioning, cruise control, USB and Bluetooth integration, a rear-view camera, tilt and telescoping steering wheel with audio controls, and keyless entry with push-button start. Technically there are a number of dealer-installed accessories too, including your typical fare of mudguards, rear spoiler, cargo organizers, and such. However, none of them are really necessary, with one exception. For some odd reason, the Yaris iA does not come with a center armrest. It's a $195 accessory, and frankly it should be a standard feature because it's so useful. If you hadn't guessed, ours wasn't equipped with it. Everywhere else the iA is a thoroughly pleasant car, if not as sporty as the old Mazda2. The little 1.5-liter four-cylinder under the hood isn't particularly potent with 106 horsepower and 103 lb-ft of torque. But with a Miata-like 2,385-pound curb weight and our car's manual transmission, it manages to feel fairly sprightly, and never has any trouble dicing it up with traffic. That transmission is pretty decent, too.

VW targeting 10M sales in 2014

Volkswagen Group believes it can sell over 10 million vehicles in 2014, with hopes of overtaking Toyota as the world's largest automaker in the process. If VW can do it, it would meet that goal four years earlier than planned. Of course, Toyota isn't sitting still - it also hopes to top the 10 million-car threshold this year and has the advantage of already holding the top spot.
"With rising volume and new models, we will increasingly see positive earnings effects as well," said VW Group CEO Martin Winterkorn during its annual press conference, according to Automotive News. The company is spending huge amounts of money to propel it to the top, investing 84.2 billion euros ($117 billion) through 2018, and according to AN it plans to introduce over 100 new models worldwide among all of its brands by the end of next year.
The German automaker may get an extra boost as the European car industry shows signs of emerging from its yearlong stagnation and China continues to grow. In January, VW Group was up 8.5 percent in Europe and 15.5 percent in China, according to its own figures. However, the US has been slowing with Volkswagen brand sales down 19.04 percent in January and down 13.81 percent in February.

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