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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.

Toyota Harrier gets a whale of a facelift [w/video]

Historically, the Toyota Harrier has been a doppelgänger for North America's Lexus RX - at some points, it was little more than a badge-swap and a few options away, at least aesthetically. That appears to be changing with this just-revealed new generation at the Tokyo Motor Show.
That's because this two-row, five-seat Toyota is in possession of a bold new look, dominated by a jutting, baleen-like grille edged in chrome, along with new headlamps and fascia. The greenhouse has likewise been revamped and gotten more pointed at the rump, which has new taillights, a resurfaced tailgate and a faux rear diffuser. Were it to be ported over to North American Lexus dealers intact, the Harrier's look would be jarring in light of the brand's spindle-grille-based design language, so we suspect that if the RX gets any of these updates (it was just refreshed for 2013), it will strike out on a different path visually.
Unlike the US RX, the new Harrier will rely on smaller-displacement four-cylinder engines, namely a 2.0-liter paired with a continuously variable transmission or a 2.5-liter four backed up by an electric motor. We'd like to see a smaller-displacement option for the US RX (it presently runs with 3.5-liter V6 engines in both gas-only and hybrid guise), but suspect it won't arrive until the next all-new model.

Tesla expects another higher-volume deal with Toyota in next few years

Four months have passed since Toyota ended its relationship with Tesla Motors, in which the electric-vehicle specialist supplied full lithium-ion battery packs to the Japanese behemoth for its RAV4 EV rollout, of which 2,500 vehicles will be completed. Now, Tesla founder and CEO Elon Musk has been heard suggesting that a future collaboration is likely within the next two to three years, and that it will probably be much larger than the last one.
Both Tesla and Toyota have sung each other's praises in the not-too-distant past, Toyota telling Autoblog back in May, "We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects." According to Automotive News, Musk said of the Japanese giant, "We love working with Toyota... We have a huge amount of respect for them as a company and certainly much to learn."
Interestingly, though, the two automakers have rather divergent strategies for eco-friendly automobiles. Toyota, as you're surely aware, is the clear-cut leader in hybrids and has thrown its massive support in the direction of hydrogen fuel cells, while Tesla has invested heavily in battery-electric technology and high-speed charging stations.