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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.

Honda stretches new Shuttle to Fit the Japanese market

While the Honda Odyssey that we get here in North America may be getting bigger with each passing generation, the minivans Honda offers in its home market are still pretty small. Like the new Shuttle. Set to be unveiled in full next month, the new Shuttle is a compact minivan that looks like a longer version of the Fit hatchback we get over here. In fact previous versions were marketed as the Fit Shuttle, but the little hatchback's handle seems to have been dropped from this latest model. It's still a five-seater, but with extra cargo capacity including under-floor storage, all in a compact, Tokyo-friendly form. It's not as small as a Kei car – the miniature vehicle segment which Honda covers with its N series – but would likely be far too small to suit the typical American family. Technical details are still forthcoming, but the new Shuttle will be available with a 1.5-liter direct-injection inline-four or a hybrid powertrain, just like the Fit. But unlike the little hatchback we know, it will also be available with all-wheel drive.

Honda and Acura recall 124,077 vehicles due to potential brake failure

Honda and Acura are recalling 124,077 total vehicles across numerous model lines due to a part in the brake system that was potentially improperly assembled, which could ultimately lead to brake failure. The models affected include the 2020-2021 Honda Civic, 2020-2023 Ridgeline, 2021-2023 Passport, 2021-2022 Pilot and the 2020 Acura MDX. As for the issue itself, Honda says the brake master cylinder “may have been improperly fastened to the brake booster assembly during production.” Specifically, the tie rod fastener is the problem point. Honda says that if it was improperly assembled, that could result in loose or missing tie rod nuts. If this is the case, when you hit the brakes, a bending load can be placed on the brake booster tie rod studs, which could in turn cause the tie rod studs to break. This then allows the brake master cylinder to separate from the brake booster, which Honda says could result in diminished or lost brake function. Honda says it received a report of brake failure on a 2021 Pilot last year, which prompted the companyÂ’s investigation. There are no crashes, injuries or deaths related to this issue, according to Honda, but it has received two related warranty claims since September 2022. Owner notifications are scheduled to begin on August 7 this year. Honda says it will inspect and replace any missing nuts, and if any brake booster assembly components are damaged, those will be replaced, too. Related video: Recalls Acura Honda Truck Crossover Hatchback SUV Sedan