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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

Union to launch Toyota organization drive in Canada

Toyota may be heading toward some labor issues in the Great White North, as employees at a pair of Canadian Toyota factories may be set for a certification vote. The Unifor union, which was the result of a merger last year between the Canadian Auto Workers and the Communications, Energy and Paperworkers union, will be holding the vote.
Over 40 percent of the employees at the Woodstock and Cambridge, Ontario factories have signed union cards, cresting the minimum percentage required to instigate a legal certification vote, according to Reuters. The Woodstock factory is responsible for RAV4 production, while Cambridge builds the Lexus RX350 and RX450h, as well as the Toyota Corolla. The two factories employ nearly 7,000 people.
It's unclear when the union will hold a certification vote at the two factories, but what is rather clear are the worker complaints. Employees are concerned about workers being hired on temporary contracts which lack the benefits of full employment, John Aman, head of organizing for Unifor, told Reuters.

KBB 2013 Brand Image Awards has some obvious and oddball winners

The sixth edition of the Kelley Blue Book Brand Image Awards have crowned a wide range of winners - in a couple of cases the recipient of the laurels might say more about KBB users than they do about the actual winner. Compiled from the responses of more than 12,000 shoppers on KBB.com over the past year, there are 13 categories broken into non-luxury, luxury and truck segments "representing the combined wisdom of the American car-buying public."
The award categories have been revamped this year, with some dropping off, some new ones appearing and at least one other given a new term. What isn't surprising is that Honda won Most Trusted Brand for the second year running, Best Value Brand for the third year in a row and took Best Overall Brand, which wasn't on last year's list of awards.
On our own shores, in the non-luxury categories Chrysler got Most Refined Brand and Buick took Best Value Luxury Brand. Neither one of those marques won anything in last year's Brand Image Awards, while Cadillac, which won Best Interior Design Brand and Best Comfort Brand last year - those awards disappeared this year - went home without a single accolade.