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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.

Rumored Mazda CX-3 may not be for US

Mazda has used its Kodo design language to make some of the most attractive, affordable cars in the world right now, with the Mazda3, Mazda6 and CX-5 (pictured above), but it still lacks a crossover in the smaller class, which are becoming popular on the world market. It seems like a natural fit then, that the Japanese company would shrink its CUV design even smaller for a CX-3 to fill the gap. However, a rumor suggests that the compact might not make it to these shores.
The Mazda2-based crossover is due later this summer in Japan and is launching in Europe and emerging markets later, according to Automotive News citing a report in Japan's Nikkei newspaper. The little CUV would cost between 1.5 million yen and 2.0 million yen ($14,700-$19,500) in Japan and be available with diesel and petrol engine options. However, the report made no mention of selling it in North America. There is a glimmer of a chance for the CX-3 here. Mazda is upgrading its Mexican factory to 230,000 annual unit capacity by 2016, which gives it the room to add the new vehicle.
While the midsize CUVs are hugely popular in the US, compacts like the Buick Encore are still a small portion of things. If Mazda could time the CX-3's launch right here, it could take advantage of the lack of competition.

Are you the 2016 Mazda Miata?

Tech nerds are spoiled. Every year, there's a new iPhone that arrives following months and months of breathless speculation and rumormongering. We car folk have a more difficult life, because vehicles with the iPhone's cult-like devotion and following, while plentiful, only receive hefty updates after several years. Case in point, the Mazda MX-5.
There's a new one coming, and much like the iPhone 6, it'll arrive in just a few weeks. So, in lockstep with the tech folk, we're anxiously biding our time and waiting with baited breath for the expected debut date of September 3. Also, like Apple fanboys, we're clamoring over any hint or teaser as to what the next-gen Miata will bring, which is why we're showing you the above image.
That is, allegedly, the new MX-5 hiding under the sheet. Auto Motor und Sport has the image, which according to World Car Fans was released by Mazda. Of course, we've reached out to the Zoom-Zoom brand for verification of its authenticity, and will be sure to update as soon as we hear back.