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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: 1991 Mercury Capri XR2

Just a year after the Mazda MX-5 Miata first went on sale in the United States, Ford's Mercury Division began selling a similarly-priced two-seat convertible here. This was the 1991-1994 Mercury Capri, and I've found an example of the hot-rod turbocharged version in a northeastern Colorado car graveyard. The Capri name has an illustrious history within the Ford Empire. First used on a Lincoln in 1952, it went on to serve as the name for a hardtop version of the early-1960s Ford Consul in the UK, then as the designation for a low-end trim level on the 1966-1967 Mercury Comet. Starting in the 1969 model year in Europe (1970 in North America), Ford began selling the best-known Capri of all: a sporty coupe based on the Cortina, sold through Mercury dealers in the United States but never badged as a Mercury here. Sales of that Capri halted here after 1978 (they continued through 1986 in Europe), but the Mercury Division then moved the name over to its version of the 1979-1986 Ford Mustang. After that, Ford Australia took the Capri name for a new Mazda 323-based sports car beginning in 1989. Then Dearborn decided that an Americanized version of the Australian Capri would be a success on this side of the Pacific, and left-hand-drive Capris began showing up in American Mercury showrooms in late 1990. Today's Junkyard Gem is one of those first-model-year cars, and it's the very rare turbocharged XR2 version. While this car was intended to be a competitor for the Miata, it's really that car's Mazda cousin. Both cars got their power from 1.6-liter versions of Mazda's versatile B engine, though the Capri had the same front-wheel-drive setup as its 323/Protege (and Escort/Tracer) platform siblings. At the same time, Ford was selling Kia-built Mazdas with Festiva (and, a bit later, Aspire) badging, alongside Mazda MX-6s with Probe badges. Just to make things interesting, American Mazda dealers were selling Ford Explorers as Mazda Navajos, while Rangers with Mazda badges followed starting in 1994. The 1990s were Mazda-riffic times at Ford! This car wasn't the first Australian-designed, Mazda-based Ford product sold in the United States. That honor belongs to the 1988-1989 Mercury Tracer, which was based on the same Mazda 323 platform as the Capri and built in Mexico. Later on, the Tracer remained a member of the 323 chassis family but was a nearly identical twin to its Ford Escort sibling.

Mazda rotary engine returns in 2020 as an EV range-extender

It's really, truly, finally happening, folks. The rotary engine is coming back. And just as the many rumors, patents, and even a Mazda2 prototype suggested, it will return as a range extender for an electric car. The news comes from an official announcement from Mazda itself. We won't have long to wait, either, as the rotary-supported EV is slated to go on sale in 2020. It will be one of two electric vehicles available, the other being fully electric. Mazda also mentions that the rotary powertrain is small enough to fit "shared packaging layouts." It's a possibility that these two vehicles are variations on the same model, similar to the Hyundai Ioniq and Honda Clarity. Mazda further notes that the rotary engine will also be able to run on liquified petroleum gas, citing the engine's ability to handle gaseous fuels. This has us wondering if Mazda will offer compatibility with other fuels at some point. Hydrogen could be a good choice for California, and Mazda has had a number of hydrogen-powered rotary-engine vehicles in the past. Propane compatibility could be popular in other regions. Mazda didn't say anything else specific about the vehicle besides highlighting the rotary engine's high power output with a small package and smooth operation. It also mentioned that the range-extended car could be used as a source of electricity when the power grid is down. We're sure to learn more as we near the car's 2020 launch date. Related Video: