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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.

Mazda announces live-streaming vehicle intro on Xbox

In April, Mazda introduced a marketing campaign titled "Game Changers" to showcase how certain people have made significant impacts in their respective sports, and now it's the Japanese automaker that is changing the game by creating an innovative way to launch a new product. Mazda is teaming up with Xbox to offer a first-of-its-kind live-streaming global debut of a new product. Mazda didn't say which model will be debuted, but our guess is that it will be the next-generation Mazda3.
The actual reveal will take place at 9 pm on June 26 during a live concert from the band Metric in New York City, but there will be other live events preceding the concert in Melbourne, St. Petersburg, Istanbul and London. Mazda will be promoting the event on social media using the hashtag #GameChanger, and there is also a contest on Xbox where one winner will receive $2,500 to attend a music event of their choice. Scroll down for the full details of the contest and vehicle debut event.

Mazda2 production fires up in Mexico

Mazda has officially kicked off production of the next-generation Mazda2 at the company's new factory in Salamanca, Mexico. Alongside the auto assembly plant, operations have also commenced at the facility's engine machining factory.
"With the start of production of the all-new Mazda2, operations underway at the engine machining plant, and an increase in our annual production capacity, we now have an even stronger production framework capable of supplying global markets with Skyactiv products of the same high quality level as those made in Japan," Mazda de Mexico Vehicle Operation's President Keishi Egawa said in a statement. "At the same time, we are pleased to be able to make a contribution to Mexico's further economic growth."
MMVO joins Mazda's Hofu Plant in Japan and the Auto Alliance factory in Thailand, which commenced Mazda2 production in July and September, respectively.