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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.

Inside Honda's ghost town for testing autonomous cars

On the edge of the San Francisco suburb of Concord, California sits a ghost town. Dilapidated buildings and cracked roads are framed by overgrowth and slightly askew street signs. The decommissioned five acre portion of the Concord Naval Weapons Station that once housed military personnel and their families is now home to squirrels, jack rabbits, wild turkeys and Honda's mysterious testing lab for autonomous vehicles. This former town within a Naval base – now dubbed "GoMentum Station" – is the perfect testing ground for Honda's self-driving cars. An almost turn-key solution to the problem of finding somewhere to experiment with autonomous vehicle inside an urban area. Thanks to the GoMentum Station, the automaker has access to 20 miles of various road types, intersections and infrastructure exactly like those found in the real world. Just, you know, without all the people getting in the way. While the faded lane markers and cracked asphalt might initially make it difficult for the car to figure out what's going on around it, that's exactly what you want when training a self-driving system. Many roads in the real world are also in dire need of upkeep. Just because autonomous vehicles are hitting the streets doesn't mean the funding needed to fix all the potholes and faded lane markers will magically appear. The real world doesn't work that way and the robot cars that will eventually make our commutes less of a headache will need to be aware of that. Plus, it's tougher to train a car to drive downtown than to barrel down the highway at 80 miles per hour. A company is going to want to get as much practice as possible. While semi-autonomous driving on the everyone-going-the-same-way-at-a-constant-speed freeway is already a reality, navigating in an urban environment is far more complex. If you've driven on the streets of Los Angeles, San Francisco, New York, Chicago or Seattle you know that driving downtown takes far more concentration than cruising down the interstate. With all that in mind, Honda's tricked out Acura RLX did a good job during an (admittedly very controlled) hands-free demo. It didn't hit either of the pedestrians walking across its path. It stopped at stop signs and even maneuvered around a mannequin situated in the middle of the road. The reality is, watching a car drive around the block and safely avoid stuff is boring. Not to metion, Google has been doing this for a while in the real world.

Honda MC-? will use solar-powered chargers in 'micro' EV tests

Honda is envisioning what it calls a CO2-free society and, not surprisingly, it's a rather sunny one, in one Japanese city, at least. The Japanese automaker is kicking off a test program with the micro-electric-vehicle that will use power generated via photovoltaic energy collected and stored at EV charging stations. Yes, the big old sun will power those little-bitty MC-? cars. MC-? is shorthand for "Micro Computer Beta" and the car is certainly an appropriate vehicle for these tests. The car is 98 inches long (about eight inches shorter than a Smart ForTwo) and has a 43-mile-per-hour top speed as well as an electric motor that delivers a meager eight horsepower. The car is designed to meet Europe's quadricycle regulations and has a 50-mile single-charge range. No word on if or when it'll go into production, of course, but Honda and Toshiba are working with Japan's Miyakojima City on the project, with Toshiba responsible for building three solar-powered EV-charging stations. The Japanese automaker unveiled the latest incarnation of the 1+1 tandem-seating-arrangement MC-? last fall. You can see our "Quick Spin" impressions of the model here and read Honda's press release below. Honda Begins Experimental Test-driving of MC-? Micro-sized EV Using Renewable Energy TOKYO, Japan, January 28, 2014 - Jointly with Miyakojima City and Toshiba Corporation, Honda Motor Co., Ltd. began experimental test-driving of the MC-?, Honda's micro-sized EV, using photovoltaic (PV) energy as part of the Miyakojima City Small-sized Electromotive Mobility Project*1. Through this experimental program, Honda will operate an environmentally-responsible micro-sized EV using renewable energy, and work together with the local community to explore the possibility of a CO2-free society. In November 2013, Honda began separate field tests jointly conducted with Kumamoto Prefecture, Saitama City and Miyakojima City using the MC-?. For the field tests in Miyakojima City, as a part of the initiative as an environmentally-responsible model city, the feasibility of the introduction and utilization of small-sized electromotive mobility products and electricity supply facilities are being verified. For this particular driving experiment in the city using renewable energy, the MC-? will be charged from three new PV recharging stations newly built by Toshiba.