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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.

2016 Mazda MX-5 Miata Launch Edition now available for pre-order

Want to be one of the first to buy the fantastic new 2016 Mazda MX-5 Miata? Now's your chance. The pre-order books open at 12:00 PM Eastern for the very special Launch Edition, which is limited to just 1,000 units. All of the MX-5 Miata Launch Edition cars come painted in Soul Red with a Sport Tan leather interior, an exclusive combination for this special run. Buyers only need to choose between the six-speed manual transmission (the obvious choice), or a six-speed automatic. Pricing is set at $30,495 if you want the stick-shift, and $31,570 if you prefer the auto. So, want one? Of course you do. Head over to Mazda's pre-order site and place a $500 deposit toward the purchase of your car. Better act fast, though. When Mazda offered its 25th Anniversary MX-5 Miata via pre-order, all 100 of those cars sold out in just ten minutes.

Watch this 1,500-hp Mazda MX-5 smoke a race track

In December 2014 we watched New Zealand drifter "Mad Mike" Whiddett assemble his RADBUL, an NC-series Mazda MX-5 Miata with a four-rotor engine aided by twin Garrett turbochargers. The Dr. Frankensteins at engine builders Pulse Performance expected their creation to be good for 1,500 horsepower. This year we get to watch Whiddett run the monster around Highlands Motorsports Park in New Zealand, brewing up enough tire smoke to set of fire alarms in the International Space Station. When the car was finished in February Pulse Performance put it on the dyno, toning down the boost because "the tires easily smoked the rollers." The result on the day was 1,032 horsepower from the 2.6-liter engine. When Whiddett campaigned it at the Forth Worth, TX round of this year's Formula Drift Pro Championship, he said tiny adjustments have a huge effect on the way the car behaves so they were still trying to find the right balance a few months into the season because of the testing limit outside of competition. Unsurprisingly, he also said the car "is so damn fast that I'm actually having trouble slowing down." RADBUL is the third in Whiddett's line of Mazda drift specials, after the RX-8 BADBUL and the RX-7 MADBUL. Check out the video above for the ballet, and for more, check out the behind-the-scenes and the 360-degree POV videos.