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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.

Xcar tries to figure out what makes the Miata so great

Over the past 25 years and 3 model generations, the Mazda MX-5 Miata has shown that you don't have to be the best to be a massive success. The little, Japanese roadster has never been the absolute peak of automotive performance, but it's precise handling, good reliability and frugal running costs have helped make it a star. Autoblog recently tried to give you the experience of driving one on video, and now Xcar Films has made its own in an attempt to show what makes this droptop an icon.
As Xcar puts it, the Miata isn't the world's best sports car, but it is the world's favorite. When they were originally designing the roadster, Mazda's engineers took everything that made British droptops from the '60s great, and junked all of the stuff that made them a terror to own. The result was a car that would start up everyday with no fuss and get drivers wherever they needed to go with a huge grin on their face.
The fourth-generation Miata is imminently on the way for its September 3 unveiling, and the very early rumors indicate that Mazda doesn't plan to rock the boat too much with the latest one. It supposedly rides on a longer wheelbase and wider track but with the weight trimmed by over 200 pounds. Check out Xcar's video for a primer on MX-5 history and why the automotive world loves this little roadster.

Mazda keeping non-hybrid, non-electric Skyactiv strategy

Mazda still thinks that it can buck the trend of adding those fancy batteries and electric motors to its cars. At least for a little while longer. Hopefully. Speaking to Auto Express recently, Mazda's European boss, Jeff Guyton, said that he expects his company's cars to be able to get a lot more efficient without resorting to any of that fancy electrification stuff. "I think there's at least 20-30 percent better fuel economy by the end of the decade," he said. He said that he expected to get to Europe's low target of 95 grams of CO2 per kilometer, "without any significant deployment of electrical drive." This part is all in line with Mazda's long-term Skyactiv strategy, as laid out back in 2011 and first mentioned publicly in 2010. Remember, this is the company that once proudly proclaimed, "Not Electric. Not Hybrid. Not A Drag To Drive." As explained back in 2011, Mazda hopes to wait until other automakers have done all of the heavy lifting on developing plug-in and hybrid tech so that when Mazda enters the market, things will be cheaper. Of course, Mazda has been quietly testing all-electric vehicles and Guyton said that there may be an Mazda EV at some point. "We are interested in electric technology and it will be in the distant future when it will be quite important," he told AE. "But we think it will take some time to be commercially attractive without tax payer-funded incentives." How much of a delay? Well, there is a gas-electric Mazda 3 hybrid available in Japan that uses some powertrain parts from the Toyota Prius, and we all know that the Prius has been around for ages. Maybe in 2025, Mazda will come out with a Leaf-based Mazda 2. Related Video: Green Mazda Fuel Efficiency Electric Hybrid skyactiv mazda skyactiv