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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.

Junkyard Gem: 2001 Acura MDX

The point of the Junkyard Gems series is to share automotive history, and the period of the middle 1990s through early 2000s is a very interesting one for U.S.-market new vehicles. The SUV revolution went into high gear with the introduction of the 1991 Ford Explorer and 1993 Jeep Grand Cherokee, and sales of sedans, hatchbacks, and minivans began their steady decline. The Detroit companies were in good shape to cash in on the commuter-truck craze, with plenty of additional models ready for a quick slathering of luxury features. Toyota, Mitsubishi, Nissan, and Isuzu were ready as well … but Honda was completely unprepared for the Next Big Thing at that point. With American sales absolutely critical to Honda (which has never held much market share for four-wheeled vehicles in its home country), a deal was made to rebadge the Isuzu Trooper as the Acura SLX and the Isuzu Rodeo as the Honda Passport while an all-Honda big SUV could be developed. That SUV was the Acura MDX, which debuted for the 2001 model year. Here's one of those first-year MDXs, a huge turning point in Honda history, found in a Denver-area self-service boneyard recently. Oh, sure, Honda began selling the CR-V over here in 1997 and so wasn't completely out of the SUV game during the 1990s, but that little Civic-based machine was never going to lure away many Explorer or even Montero shoppers. The MDX was a proper three-row crossover SUV, despite being based on the same platform as the not-so-imposing Accord, and a Honda-badged version (the Pilot) followed two years later. Here's that third row, which looks quite cramped, but so what? MDX sales started out respectable and stayed that way. Every 2001-2013 MDX ever sold here came with a VTEC-equipped V6, automatic transmission, and all-wheel-drive (some later MDXs could be bought with front-wheel-drive). This engine is a 3.5-liter DOHC plant rated at 240 horsepower and 245 pound-feet, decent enough for a truck that tipped the scales at well beyond two tons. The MSRP on this truck was $34,370, which amounts to around $58,260 in inflation-adjusted 2022 dollars. The base '01 Ford Explorer started at just $25,210, but the swankified Eddie Bauer Edition was better-suited to the Acura-shopper demographic and listed at $32,025. You could buy a new Montero XLS and do some serious off-roading for $31,397 that year, but it had warlord-grade ride to go with its warlord-grade abilities in the bundoks.

Honda Civic Wagon Concept to debut at Geneva

Honda is getting warmed up for the upcoming Geneva Motor Show, with a sketch of some very Euro-flavored forbidden fruit. Seen above (click on the image to see an expanded view) is the Honda Civic Wagon Concept Model - a rather tentative name for a car that Honda claims "provides strong cues for the exterior design of the final mass produced version."
The sketch seen here is obviously very stylized, but we think that if Honda can stay true to its sleek rounded forms and aggressive silhouette, the final product could be quite fetching. Note that this is an image handed out by Honda of Europe, for a European auto show - we have every expectation that that any production-ready Civic wagon will be a Europe-only deal. Sorry, guys.
Find Honda's brief press release below, which also includes news of the European debut of the updated NSX Concept we saw at January's Detroit Auto Show, along with a diesel-powered CR-V.