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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's mission for the 2017 CX-5: Smooth out the NVH

NVH: the dreaded noise, vibration, and harshness. According to current Mazda CX-5 owners, as well as those who decided against becoming owners, NVH was its biggest area of need. Traveling in the CX-5 was just too loud, so Mazda's engineers made sure that the redesigned, second-generation model would offer its occupants a more serene environment in keeping with quieter competitors. To reduce wind noise, more aerodynamic parts were strategically placed about the exterior, while extra efforts were made to reduce low-frequency noises on coarse surfaces. According to Mazda engineer Dave Coleman, the new CX-5 is nearly as quiet as its platform-mate, the 2016 CX-9. Actually, to be very accurate, all Mazdas apart from the CX-3 and 2 (aka Toyota iA) now share that platform. Another reason compact SUV buyers opted to skip the CX-5 was its comparatively firm ride. So, while the CX-5 remains "head and shoulders above the segment for handling," according to Coleman, the ride was improved. One of the primary ways of achieving that was the adoption of rigid steering mounts, which allowed for the suspension to be less stiff without a loss in handling precision. View 12 Photos Of course, handling remains a key reason to buy the CX-5, and it's improved for 2017 courtesy of an increase in body rigidity, the adoption of liquid-filled front suspension bushings, and Mazda's G-Vectoring Control. Under the hood, every CX-5 now comes standard with the 2.5-liter Skyactiv-G four-cylinder, with output figures to be announced at a later date. The 2.0-liter, previously standard on the Sport trim, has been exiled to other markets. However, finally making its appearance on these shores is Mazda's 2.2-liter Skyactiv-D diesel engine. Although Mazda did its darndest to make it certifiable in the United States without a urea injection system, it was ultimately unable to do so without resorting to an ultra-sluggish throttle response that engineers deemed was anathema to what was expected of a Mazda. Therefore, the diesel-powered CX-5 will indeed have a DEF tank that will need to be periodically topped off to not run afoul of emissions regulations. Otherwise, the 2017 CX-5 is very much an evolution of the SUV it replaces. Customers thought its size was just right, so its passenger and cargo area remain in the same ballpark.

Mazda5 will officially die this year

We knew it was coming, but it just became a lot more official. Mazda is going to kill the closest thing to a driver-oriented people-mover when it phases out the Mazda5 MPV for model year 2016. The news was presented quietly and unremarkably, with Mazda giving its compact minivan a single-line obituary as part of an announcement recapping changes to the brand's lineup for 2016: "There are no plans at this time to bring a replacement Mazda5 to the US market beyond the 2015 model year." Despite being a critical favorite for its fun-to-drive nature and seven-seat capacity, the 5 never really resonated with consumers, representing a small percentage of Mazda's total sales. In its best sales year, 2008, only about 22,000 were sold, representing only about eight percent of the brand's sales that year. That percentage was even smaller in recent years, as the 5's sales fell into the low ten-thousands. In other Mazda news, the brand is making a number of small, subtle changes to its lineup. Almost all of them constitute new ore removed options and are available for your perusal in the attached press release. Scroll down for a look. 2016 MAZDA LINEUP: WHAT'S NEW Having launched two refreshed and two all-new models for the 2016 model year, Mazda North American Operations is keeping busy with broadening its award-winning lineup of cars and crossovers. For the 2016 model year, Mazda is keen to maintain its leadership in providing unmatched KODO—Soul of Motion design and excellent driving dynamics and democratizing advanced safety technologies like Mazda Radar Cruise Control and Smart Brake Support into even its smallest, most affordable vehicles. Mazda6 and CX-5 return for 2016 with new styling elements, interior amenities and refinement. Mazda CX-3 enters the North American market in a new, hot segment, and MX-5 Miata continues its mission to provide unadulterated driving thrills to the masses. Last but not least, Mazda3 has been repackaged for 2016. Below is a list of what's new and different with Mazda's 2016 lineup.