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Japanese automakers welcome North American trade deal, fear what's next

TOKYO — Toyota, Nissan and Mazda welcomed on Tuesday the revised North America trade deal that left Japanese automakers unscathed, but they may face a bumpy ride when Washington and Tokyo hold new talks on over $40 billion of annual U.S. auto imports from Japan. The United States and Canada reached an agreement on Sunday to update the 1994 North American Free Trade Agreement after Washington had forged a separate trade deal with Mexico in August. The updated deal effectively maintains the auto industry's current footprint in North America, and spares Canada and Mexico from the prospect of U.S. national security tariffs on their vehicles. Mazda, which ships cars to the United States from Mexico and Japan, called the deal a "big step forward". Nissan, which makes the cars it sells in the United States locally as well as in Mexico, Japan and other countries, said it was "encouraged" by the agreement. Toyota, Japan's biggest automaker, said it was "pleased" that a basic deal was reached. Other automakers were not immediately available for comment. While the deal has removed the risk that the disintegration of the pact would have posed to automakers, bigger risks loom large for Japanese firms as a chunk of the roughly 7 million cars they sold in the U.S. last year were shipped from Japan, and a trade deal between Washington and Tokyo has yet to be agreed. The United States and Japan last week agreed to begin fresh trade talks, with U.S. President Donald Trump seeking to address Japan's $69 billion trade surplus, of which nearly two-thirds comes from auto exports. Washington is also investigating the possibility of slapping 25 percent tariffs on auto imports on national security grounds, although it has agreed with Japan to put any new tariffs on hold during the talks. Analysts say the United States may take a tougher stance on auto imports from Japan than from its neighbors. "If Japan requests an exemption from the 25 percent tariffs under consideration, Washington could propose a more strict cap on imports than it agreed to with Mexico and Canada," said Koji Endo, senior analyst at SBI Securities. "That would be a risk." This could be a big blow to Japan, as the United States is a key source of revenue for Japanese automakers including Toyota, Nissan and Honda. The U.S. market accounts for a quarter or more of their annual global vehicle sales, and of their total U.S.

The Honda Crosstour is no more

While hardly the most surprising news in the automotive world, it's with sad hearts that we report the passing of any automotive nameplate... even when it's as generally unloved as the Honda Crosstour. In a statement from American Honda, Executive Vice President John Mendel confirms the quirky, sort-of wagon's demise for the 2016 model year. The Crosstour was introduced in 2010 as a compromise between a crossover and a traditional station wagon. However, unlike the popular Subaru Outback with a similar melding of styles, Honda's was never able to really catch on. Honda America's CEO was disappointed with sales as far back as 2011, and an attempt to make the model look a little more rugged didn't work. In 2014, 11,802 Crosstours were sold, a 29.9-percent drop from the year before. In its announcement for the vehicle's discontinuation, Honda says the new HR-V should "play a more significant role as a gateway model." The company thinks the crossover segment today has changed from when the Crosstour debuted. The capacity at the East Liberty Plant in Ohio previously required for Crosstour production will be used for the more popular CR-V, Acura RDX and, as of early 2017, the MDX. Meanwhile, production of the Honda Accord Hybrid will be moved from the Marysville Auto Plant in Ohio to Japan. Statement by John Mendel, Executive Vice President, American Honda Motor Co., Inc. Re: North American Production Portfolio Apr 8, 2015 Honda's growth strategy in North America is keyed to aligning our product portfolio and related production around the needs of our customers and growth segments in the marketplace. This includes the fortification of our light truck line-up with the recent introduction of a refreshed version of America's best- selling SUV, the CR-V, as well as the all-new 2016 HR-V, a new 2016 Pilot, and the next generation Ridgeline truck, coming to market next year. The strategy also includes strengthening our leading lineup of passenger cars with the introduction this fall of an all-new Civic lineup that will include more variants than ever before, including a new five-door model. In order to fulfill this customer-focused strategy, we are making several changes to the lineup of vehicles we build in our auto plants in Ohio.

Honda next to open museum to Google Street View

Had your fill of tooling around the Lamborghini Museum on Google Street View? Maybe Italian supercars aren't your thing? Then we've got good news, because The House That Ferruccio Built isn't the only automotive museum in cyberspace: now the Honda Collection Hall has opened its doors to the crew from Mountain View, too.
The Honda Collection Hall, for those who haven't made it out to Japan's Tochigi Prefecture, is a grand three-story museum dedicated to all things Honda. It's located at the Twin Ring Motegi, and has been open since 1998. Inside visitors will find everything from robots and scooters to SUVs and racing cars. But if you can't make it there in person, you can check out all three levels of floorspace on Street View right from the comfort of your home. Check out the images above and the interactive map below.