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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 rumored to bring rotary-powered RX-9 concept to Tokyo

Stop us if you've heard this one before: Mazda will bring a rotary-powered sports car to the next big auto show. Okay, so we stopped for a second, but the show must go on. Following an official teaser image (shown above) late last month, Motoring.com.au has what it claims are renderings of the curvy, two-door coupe – called the RX-9 – that Mazda will bring to the Tokyo Motor Show later this month. The images show a far softer styling than Mazda's current crop of Kodo-inspired vehicles, while the overall look screams of a modern-day Cosmo Sport, the Japanese brand's first rotary-powered vehicle. And though that connection alone might be enough to justify whisperings of a successor to the RX-7 and RX-8, Motoring claims there will be an even more overt sign of this concept's power source. "Look to the Cosmo Sport," an inside source told the Aussie website, signaling that the Mazda stand would feature the vintage two-door. "The Cosmo has no earthly reason for being there unless..." The rotary rumor, if it comes true, won't exactly be what we're use to. While Motoring brings up the previously reported 16X – a 1.6-liter two-rotor – it builds on our 2013 report. According to the Aussies, the new engine could feature a two-stage electric turbocharger, be paired with a hybrid powertrain, offer up to 450 horsepower, and we're guessing, be hilariously complicated. Joking aside, it sounds like Mazda's goals here are admirable. A rotary-equipped sports car that could counter the 1.3-liter RX-8 engine's appetite for fuel and improve on its mediocre low and mid-range torque would be interesting indeed. As for those renderings, Motoring has front and rear three-quarter images. Comparing the rear with our original teaser leaves the look open to interpretation, but after seriously upping the exposure on the teaser (thanks Photoshop), the taillights and overall profile shape look to be a spot-on match. In front, the long hood shares some Kodo elements, like the headlights and grille, but its undeniable coupe shape – a long hood and very short deck – are far more organic and, dare we say, calm, than Mazda's other vehicles. You can take a closer look at the renderings over at Motoring's website. Do that, and then head back and let us know what you think of these RX-9 rumors. Is Mazda finally going to be bringing a rotary back to market?

Mazda's new turbo four fits in both the 6 and the 3

Despite the size differences, the Mazda CX-9 shares a lot with its smaller car-based siblings, the Mazda6 and Mazda3. That could allow Mazda to slot its full-sizer's new 2.5-liter, turbocharged four-cylinder engine under the hood of its smaller offerings. Pardon us while we do a happy dance. "[The 2.5-liter turbo] fits in a lot of our cars, and where we're actually going to put it is another question," Mazda North America vehicle development engineer Dave Coleman told Australia's Car Advice. Coleman specified that the turbocharged engine will fit in all the same applications that can accommodate the company's 2.5-liter gas and diesel engines. "Basically, that big space we used for the bundle of snakes exhaust manifold, the turbo is in that space too. They're all packaged to occupy the same space. It's exactly the same clearance as the exhaust manifold of the other engines." This kind of logic – if Engine A is the same size as Engine B, then both should fit in Car C – is what's lead us to imagine a turbocharged Mazda6 since the new engine was announced. In short, it's great news. Mazda's 2.5-liter turbo is a hell of an engine in the CX-9, and it's hard to imagine it'd be worse in a lighter vehicle. But just because it works from an engineering standpoint doesn't mean it's going to happen. At least, not soon. "It fits. I'm not a product planner so I don't get to make that call," Coleman told Car Advice. "It's up to the product planners to decide what they're going to put it in." The most obvious application for a turbocharged engine in the 3 or 6 is as a reborn Mazdaspeed model. But don't get too excited – Coleman said Mazda hasn't even gotten as far as building an engineering prototype with this engine. We're still firmly at the theoretical stage. And that's bad news, because it gels with what we've been reporting – that Mazda will wait a generation for future Mazdaspeed models. We just stopped doing our happy dance. Related Video: