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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.

Snapshots from Acura NSX prototype run at Mid-Ohio

Acura's achingly slow showing of the new, hybrid NSX saw yet another step yesterday, as we reported late last week. A powder-blue prototype ran ahead of the open-wheelers at the Honda Indy 200 at the Mid-Ohio Sports Car Course. Why show the NSX Prototype at Mid-Ohio? Honda's Ohio research and development center, which has taken the lead on NSX development, is just 60 miles from the track. And as race sponsor, Honda must have figured it would give the spectators a glimpse of the new supercar it's been teasing for the better part of a decade.
With a planned launch in 2015 (special emphasis on the "planned" part, considering the NSX's history), the NSX Prototype shown here sports graphics that "speak to Acura's intention to go racing with the new NSX." That's great news for fans of endurance racing, although it remains to be seen when a motorsports program for the new NSX will get off the ground.
Take a look at the fresh gallery of images, and be sure to head over to our original Mid-Ohio post for the video footage of the NSX Prototype on track.

Honda unveils new 3.5-liter racing engine

Honda is following Ford's lead and debuting the second twin-turbocharged V6 to be used by Daytona Prototypes in the United Sports Car Championship. The wait won't be long to see it on track because the new engine will debut with the Starworks Motorsport team in a Riley Gen3 prototype chassis at the 12 Hours of Sebring from March 12-15.
The new HR35TT engine is based on Honda's J35 production V6 found in a variety of its models, including the current Accord. The racing version benefits from dry sump lubrication, but is still similar to the production version with an aluminum block, direct injection and single overhead camshafts. It is fueled by 100-octane E10 fuel, but like many racing engines, exact power figures have not been released.
Starworks has had a close relationship with Honda since it won the LMP2 class at the 24 Hours of Le Mans and in the FIA World Endurance Championship in 2012 with a Honda Performance Development ARX-03b chassis and Honda engine. We can't wait to see this new mill hit the track, and see how it fairs against Chip Ganassi Racing's EcoBoost-powered Riley. Scroll down to read the press release for the full details.