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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.

2019 Mazda CX-5 Turbo Drivers' Notes Review | More power, more love

The second-gen Mazda CX-5 has been on sale since 2017, but the big news for this year is the addition of a new turbocharged 2.5-liter inline-four. The engine — dubbed Skyactiv-G — is shared with the Mazda6 and the Mazda CX-9 three-row crossover and makes 227 horsepower and 310 pound-feet of torque on regular gas and up to 250 hp when running premium fuel. Fuel economy for the new engine is rated at 22 mpg city, 27 mpg highway and 24 mpg combined. The engine is only available with all-wheel drive, but the extra grunt means fuel economy is down from the naturally-aspirated 2.5-liter inline-four (24 city, 30 highway and 26 combined). The new engine is wrapped in the same familiar package we've seen for the past couple of years, but is exclusive to the range-topping Grand Touring Reserve and Signature trim levels. This particular test car was a Signature, which starts at $37,935 before options. For reference, a base, front-wheel drive CX-5 Sport starts at $25,395. Standard features on the CX-5 Signature include 19-inch wheels, LED lighting, rain-sensing wipers, leather seating, heated front and rear seats, a heated steering wheel, adaptive cruise control, proximity entry and push-button start, and a Bose audio system. Options on this Soul Red ($595) model are restricted to accessory items: $70 for a cargo mat, $125 for all-weather floor mats, $400 for illuminated door sills, $125 for a rear-bumper guard and $250 for a retractable cargo cover. The final MSRP comes in just below $40,000. Our contributor Ben Hsu had high praise for the CX-5 turbo in our recent first-drive review. Now the rest of us have had a crack at it. Editor-in-Chief Greg Migliore: I love the CX-5's looks and driving dynamics. It's a sporty Mazda tailored to the crossover segment. This one, done up in Soul Red Crystal Metallic (what a name) and Signature trim with smokey 19-inch wheels, looks great. The Skyactiv-G four-cylinder with 227 hp (on 87 octane) and 310 pound-feet of torque makes for a brisk driving experience. In Sport mode, it's almost more eager than I want it to be. The main downside is the interior. The materials are just fine, and the infotainment is a little clunky to use. It takes a few more moves than I'd like to change the radio station. Also, major demerits for not being able to put a rear-facing car seat in the middle. Considering young families are a target market for this, that is not ideal.

Junkyard Gem: 2004 Mazda RX-8

You know when a type of vehicle has reached its value tipping point (where it's not worth fixing up a broken or crashed one) when examples of it begin showing up in the big American self-service wrecking yards. During 2016, the BMW Z3 and Mazda RX-8 reached that point and began to appear, just one at a time, here and there, but obviously they were the advance scouts for many to follow. Such cars usually get picked over in a hurry ... at first. Here's a well-stripped example of a first-year RX-8 I found earlier this year in a Denver yard. Some RX-7 owner probably nabbed the Renesis engine right away, and then the guys who grab late-model parts to flog on eBay were next. Still, plenty of interesting components remained on this car when I photographed it, and RX-8s that end up here in a year or two won't get swarmed by the vultures anywhere near as quickly. Does that mean that RX-8s are now cheap enough to race in the 24 Hours of LeMons? Could be! Related Video: Featured Gallery Junked 2004 Mazda RX-8 View 11 Photos Auto News Design/Style Mazda mazda rx-8