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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, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

Mazda CX-30 'just right' crossover will head from Geneva into production

As more and more customers move into the crossover segment, the less the segment is one-size-fits-all, or even three-sizes-fit-all. As such, Mazda has taken the opportunity at the Geneva Motor Show to offer a new, "just right" crossover to its lineup. The 2019 Mazda CX-30, as it's called, slots between the diminutive CX-3 and the compact CX-5 crossovers. The CX-30 shares the "Kodo" (meaning "soul of motion") design language Mazda does so well, and the execution here is excellent, too. We love the long hood and simple but elegant curves, the way the light reflects off the sides in dramatic waves. Its no surprise that Mazda chose its Soul Red Crystal to show off the new model. Mazda says it had four goals for the CX-30, two of which had to do with the size of the vehicle. It needed to be small enough to be highly maneuverable, so that drivers wouldn't hesitate to take it anywhere they need to go, but it also had to be roomy enough to provide a comfortable space for multiple passengers to easily enjoy one another's company. Mazda wanted the design to "embody the joy of owning something that matches your sensibilities." Finally, it had to perform in a way to provide peace of mind and a relaxing driving experience. Mazda will offer the CX-30 with its Skyactiv-G 2.0 gasoline engine with cylinder deactivation, Skyactiv-D 1.8 diesel engine and its new Skyactiv-X engine with gasoline compression ignition. Both gasoline engines will use Mazda's mild hybrid technology to help improve fuel economy without sacrificing performance. The CX-30 will also be offered with Mazda's I-Activ all-wheel drive and G-Vectoring Control Plus for maximum grip and stability. It will be available with either a six-speed manual or six-speed automatic transmission. The CX-30 is equipped with a driver monitoring system to improve safety using an infrared LED and camera to watch the driver's face for signs of drowsiness or inattentiveness. It'll alert the driver to pay attention, and will sound the braking alert earlier. Other active safety systems include available Front Cross Traffic Alert and Cruising & Traffic Support, the latter of which will employ accelerator, brake pedal and steering operations in traffic jams to help avert driver fatigue. Mazda hasn't said whether it will offer the CX-30 outside of the European market. Related Video: