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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

Toyota hits 10 million Camry models sold in US

This year marks 30 years of sales for the Toyota Camry in the US, and in that time, it has amassed more than 10 million sales. In its first year on the market, the Camry sold 52,651 units, but it has gone on to become the best-selling car in the US for the last 11 years.
Toyota says that "virtually all" current Camry models sold in the US are made here, and three-quarters of all Camry contents are domestically sourced. Scroll down for the official press release from Toyota, and be sure to check out our gallery of images showing every model year and bodystyle of the Camry since it first went on sale in 1983.

2017 Scion FR-S getting slight power bump?

A common refrain when discussing the Scion FR-S and its sibling the Subaru BRZ is that they are capable vehicles but are in need of more power. The latest rumors suggest that some more muscle might finally be on the way for the coupe's refresh. Don't expect something like the STI Performance Concept with a 300-horsepower, turbocharged flat-four, though – the gains in the real world are likely to be significantly more modest. According to Toyota insiders speaking with Motoring in Australia, the local Toyota GT86 (our FR-S) is due for a styling and powertrain refresh for the next model year. The 2.0-liter boxer four-cylinder engine isn't expected to get a drastic power increase, but it's not being completely neglected. A new intake manifold and friction reductions reportedly allow for five percent more grunt. If accurate, and if the changes also come here, that would take output of the US version to 210 hp and 159 pound-feet of torque. The adjustments could improve fuel economy by seven percent, as well. Handling is already a forte for the FR-S and BRZ, and things could get even better with this refresh. Motoring claims that dampers from Sachs might become standard equipment, along with a reinforced subframe. The close relationship with the BRZ reportedly rules out any dramatic changes to the styling for this update. However, the coupe is still likely to wear a new hood with vents in it, reshaped headlights, and a revised fascia with a larger lower grille. At the rear, expect a rear diffuser and exhaust pipes at the corners. While minor compared to all of these rumored updates, Scion recently gave the FR-S a few tweaks in the US for the 2016 model year (pictured above). In addition to some new colors and interior trim, it now comes standard with a seven-inch touchscreen infotainment system and rearview camera.