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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.

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.

New Mazda CX-4 teaser shots emerge ahead of Beijing debut

The Kodo styling language seen on last year's Koeru concept seems to translate well to a production car, judging by these teaser images of the upcoming CX-4 from Mazda's Chinese press site. And, as has been seen on several recent Mazdas, concept cars can be quite close to their eventual production versions. An earlier press release implies the CX-4 should be seen as a more coupe-like counterpart to the CX-5, with some of the MX-5's characteristic and often emphasized jinba ittai feel injected into it – if the MX-5 is all about the rider and horse being one, the CX-4 would just be a slightly bigger steed. The 19-inch wheels and LED headlights are some of the more attention-grabbing details on the car. Inside, there's a head-up-display and a MZD connect infotainment screen as seen on other current models. The hardware on the "Exploring-Coupe SUV", as Mazda call it, should match the CX-5: 2.2-liter SKYACTIV-D turbodiesels in some markets, 2.0 and 2.5-liter SKYACTIV-G gasoline engines in most. There will also be a choice of front-wheel-drive or all-wheel-drive. The Beijing Motor Show opens to the public on April 29th, so we won't have to wait a whole lot longer to see the whole thing. Related Video: