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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.

Fiat 124 Coupe could join Spider line next year

While Mazda's content to tease coupe lovers with the last-gen MX-5 Power Retractable Hardtop and the upcoming RF, the company is loath to offer a version of its lovable roadster with a permanent hardtop. But Fiat isn't so fickle. According to Autocar, the Italian brand could unveil a proper hardtop Fiata as early as next year. Likely called the 124 Coupe – duh – Autocar reports the addition of a fixed roof will spice up the current Spider. But what kind of spice is more difficult to predict. AC reports that FCA could stay the course, offering the new hardtop with the same powertrain lineup as the Spider – 138 horsepower in the UK and 160 hp (164 hp in Abarth trim) in the US – or drive the 1.4-liter turbocharged four-cylinder higher. As for how the car will look, Autocar points to the handsome 124 Abarth Rally Concept from the 2016 Geneva Motor Show. Don't expect integrated rally lights or a standard yellow-on-red paint scheme, but the new model will likely borrow that concept's roofline – more notchback than the MX-5 RF's fastback-like look. That'd fit with the 124 Coupe's ancestors, which wore a traditional notchback roofline. Fiat offered a 124 hardtop between 1967 and 1975, giving a new hardtop Fiata much more historical precedence than a comparable MX-5. AC reports the new 124 Coupe will likely carry a 10-percent premium across the pond, with a similar increase in the US. But predicting the impact of that price hike is a little bit trickier than multiplying the 124 Spider's price by 1.1, since we don't know what trims the Coupe will come in. The Abarth is likely a shoe-in, starting around $31,000. If, and it's a big if, Fiat sells a 124 Coupe Classica, expect a $27,500 starting price, while a hardtop Lusso would be a smidge over $30,000. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mazdaspeed2 supermini hot hatch under consideration

Though the Ford Fiesta ST and Fiat 500 Abarth (and arguably the Mini Cooper S) may stand pretty much alone in the North American market, in overseas markets, supermini hot hatches are a big deal. Unfortunately, challengers like the Volkswagen Polo GTI, Seat Ibiza Cupra and Renault Clio RS 200 Turbo never make it to our showrooms, but word has it that there's soon to be a new entry on the market.
That would be the Mazdaspeed2, which would be badged in certain markets as the Mazda2 MPS. Speaking with Australian site CarAdvice.com.au at the launch of the Mazda2 on which it would be based, the Japanese automaker's global sales chief and the hatchback's deputy product manager hinted that such a product is definitely being discussed, even if it hasn't yet been approved.
This wouldn't be the first time such a notion were entertained, as Mazda has shown numerous performance concepts based on the previous Mazda2/Demio over the years, but none have come to fruition.