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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.

Mazda2 sedan images released ahead of Thailand reveal

Mazda will let customers put some junk in the trunk of its Mazda2 with the introduction of a new four-door model at the upcoming Thailand International Motor Expo on November 28. While the show is still days away from beginning, the Japanese automaker is already spilling some of the details about the sedan variant of its fetching subcompact. The four-door and traditional hatchback versions of the Mazda2 will both hit Thailand in early 2015. The two of them are essentially identical other than the added trunk and adjusted rear styling for the sedan. It basically makes the model look like a shrunken down version of the Mazda3 sedan, which isn't a bad thing at all. The company has big expectations for the little car because they're already Mazda's bestselling passenger models in Thailand. Both models will be sold with the SkyActiv-D 1.5 diesel in Thailand, which gives them lower taxes under the government's low-emission, compact car incentive plan. According to a previous rumor, a gasoline-fueled mill could join the lineup eventually, too. There's also gossip that the Mazda2 sedan could eventually be sold in Australia and Europe, but US sales are still a mystery. When asked about the four-door here, Mazda spokesperson Eric Booth told Autoblog, "We'll have more to say on Mazda2 at a later date. Right now, our focus is on the launches of the all-new CX-3 and MX-5 as well as the refreshed CX-5 and Mazda6." The company is showing all of those models at this week's Los Angeles Auto Show. Mazda to Debut the All-new Mazda2 Sedan at Thailand International Motor Expo - Goes on sale in Thailand alongside the hatchback model early 2015 - HIROSHIMA, Japan-Mazda Motor Corporation will debut the sedan model of the all-new Mazda2 (known as Mazda Demio in Japan) at the Thailand International Motor Expo 2014*1 on November 28, 2014. The all-new Mazda2 compact sedan features handsome proportions and bold styling, a high-quality, sporty interior and a combination of excellent driving performance and outstanding environmental and safety performance. The all-new Mazda2 hatchback will also be exhibited at the expo; the first time the model has been displayed to the public in Thailand. Both the sedan and the hatchback feature the SKYACTIV-D 1.5, Mazda's newly-developed small-displacement clean diesel engine. The all-new Mazda2 goes on sale in Thailand in early 2015.

Mazda's rotary engine may live on as a range extender (UPDATE)

Update: We received a response from Mazda that confirmed plans for a 2019 electric car available in battery-only and range-extended models, but there was no comment on any other details. The text has been updated to reflect this. It may be time for rotary fans to start getting their hopes up a little for a return of the spinning triangle engine. Automotive News spoke with Mitsuo Hitomi, the man in charge of Mazda powertrains, who said there's a very good chance the next implementation of the rotary engine will be as an electric car range extender. The news source also suggests that such a vehicle could be just around the corner, since Akira Kyomen, Mazda's vehicle development program manager, confirmed to Automotive News that the company will have an EV out in 2019 in both pure electric and range-extended versions. We reached out to Mazda for more information, and a representative confirmed both the pure electric and range-extended models for 2019, but couldn't comment on anything else regarding those vehicles. Looking back, we have reason to believe that this really might happen. As far back as 2013, Mazda was working on a rotary-engine range-extended electric car in the form of the Mazda2 RE Range Extender. It had a total range of 250 miles, half of which came from its battery, the other half from a 330 cc rotary engine generator fueled by a 2.6-gallon gas tank. More recently, Mazda has also teased rotary power with the RX-Vision concept at the 2015 Tokyo Motor Show and another rumored rotary concept at this year's show, which could be the design concept teased recently. But most convincing is the patent we found from Mazda that described a range-extended electric car that would specifically use a rotary engine. The powertrain layout looks just like the one used in that Mazda2 concept. There's also the fact that, as we've previously pointed out, and as Hitomi mentioned to Automotive News, the rotary could be a good range-extender due to its compact size and smoothness. Of course it also isn't known for being the most efficient engine, but if it isn't required to provide all the forward propulsion, it could be made small enough that it's frugal, and the added space and weight savings would be important for making the vehicle more practical, adding more batteries, or simply keeping the car lighter. This news might not excite rotary die-hards who have been waiting for an RX-7 and RX-8 successor, but they shouldn't quite abandon hope yet.