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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 CX-3 to be diesel-only in Japanese home market

Diesel power. It's not just for Europeans anymore. In fact, when Mazda introduces its new CX-3 compact crossover to its home market of Japan, the model will be exclusively diesel-powered, Reuters says, citing remarks made by Mazda CEO Masamichi Kogai. Consistent with its recent push for better fuel economy, Mazda is embracing diesel power as a way to boost fuel-economy for cars that may be larger than the compact variety. Mazda, which plans to make about 150,000 gas- and diesel-powered CX-3s for global consumption per year, is pricing the diesel CX-3 at about $20,000 in Japan. Diesel sales accounted for less than three percent of new-vehicle sales in Japan last year, so there's a risk to Mazda's strategy. But the automaker, which is the fifth-largest in Japan, says performance and noise (and smoke) issues largely associated with diesel powertrains in the past have largely been eliminated. In all, Mazda expects worldwide sales for the year ending March 31 to rise almost five percent from a year earlier to about 1.4 million units. Mazda showed off an early version of the CX-3 at the Los Angeles Auto Show last November, though North American versions of the model will indeed be gas-powered. Related Video: Featured Gallery 2016 Mazda CX-3: LA 2014 View 17 Photos News Source: Reuters Green Mazda Diesel Vehicles mazda cx-3

2015 Mazda2 spotted in Japanese magazine

The styling changes at Mazda are proceeding at a fairly quick tempo. The CX-5 was unveiled, followed by a refreshed CX-9, the excellent Mazda6, and most recently a new Mazda3. This all happened over the course of less than two years, which in the auto industry is like a long week.
Now the Mazda2 is getting its revamp. Thanks to a magazine scan from Japan, we now have our first look at the new sub-compact, called the Demio, in its home market. Mazda's familial front end has been fitted, and it doesn't look quite as suited to the smaller car. Lacking the long-hood look of the Mazda3 and Mazda6, the new styling looks overly rounded, almost bulbous from our angle. It's still attractive, but the shape is kind of off-putting compared to the chiseled faces of the 2's big brothers. We'll concede that the folded magazine page may have something to do with it, however.
The next-generation 2 should adhere to Mazda's Skyactiv philosophy, which means we can expect a highly efficient four-cylinder engine, although it's impossible to say if Mazda will do away with its smallest offering's one-engine strategy. Considering the Mazda2 will be riding on a shortened version of the CX-5's platform, we'd expect some degree of mechanical parts sharing, regardless of how much the larger platform needs trimmed. Perhaps a detuned version of the 2.0-liter, Skyactiv four-cylinder could be under the 2's hood?