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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.

Honda Clarity proves hydrogen future always costs $500/month

How do you price the only car in its class? The closest thing to a Honda Clarity is the Toyota Mirai. They're both hydrogen-powered sedans, but one seats five and the other only four (the Mirai loses out, there). The only other hydrogen-powered vehicle available in the US, the Hyundai Tucson CUV, is, well, a CUV. So, really, there's no direct competitor to the Clarity. But you wouldn't know that from the price tag. Speaking this morning at the Washington Auto Show, Honda executive vice president John Mendel announced that the Clarity will have an MSRP of around $60,000 and will lease for "under $500" a month. As with other Honda vehicles, the exact numbers won't be made public until closer to the vehicle's launch date, but we assume things won't change too much. For those keeping track, those Clarity numbers are pretty much exactly what the Mirai costs. That car costs $57,500 and leases for $499/month. The Tucson can only be leased, but it, too, costs $499 a month. The Mirai and Tucson also come with free hydrogen. Honda didn't say today if the Clarity will include that bonus, but since not all hydrogen stations in California - the only place where the Clarity will be available for now – work like standard pumps, there's a good chance new hydrogen Honda owners will be able to fuel for free, too. We'll know more when the Clarity actually goes on sale – and it will be for sale and lease – later this year. Related Video: Honda Shares Clarity Fuel Cell U.S. Pricing and Sales Plans Jan 21, 2016 - WASHINGTON, D.C. Five-passenger Clarity Fuel Cell sedan slated to launch in California before the end of 2016 Expected price around $60,000 with a targeted monthly lease under $500 Next-generation Honda FCV provides significant gains in packaging, interior space and real-world performance, including an anticipated driving range in excess of 300 miles Additionally, the platform underpinning the Clarity Fuel Cell will serve as the base for a next-generation Honda plug-in hybrid to launch in the U.S. by 2018 Honda today announced the company's plans for U.S. sales of its new 5-passenger, hydrogen-powered Clarity Fuel Cell sedan at the 2016 Washington, D.C. Auto Show. Slated to begin retail leasing to customers in select California markets before the end of 2016, the Clarity Fuel Cell is expected to be priced around $60,000 with a targeted monthly lease under $500. Honda expects limited volumes in the early stages of production.

2013 Honda Civic

Lather, Rinse, Repeat
On some level, it's hard to blame Honda for the strategy it took with its new-for-2012 Civic. Executives looked at the key players on the market as the model was being developed, soaked in the growing global economic malaise, and decided that if they wanted to make decent money on their small car, they'd have to find creative ways to take cost out of its build. In light of the financial crisis, consumers and critics would surely understand some belt-tightening in order to secure the company's legendary reliability, resale value and ease-of-use, right?
So Honda took a pass on expensive new technology - more complex transmissions, forced induction, active aero, and so on. And it also substituted in some cheaper interior materials, skimped on sound deadening, creature comforts and found lots of little ways to save money. Surely in a segment where the frankly ancient and moth-eaten Toyota Corolla has consistently ranked among the sales leaders, nobody would care, eh?