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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 Project 2&4 is our kind of sidecar sideshow [w/video]

Honda makes cars and Honda makes bikes. It makes a whole lot of other things, too, but those are the two areas of expertise that have given rise to the thoroughly enticing Project 2&4 concept. It's one of the smallest vehicles unveiled here at the 2015 Frankfurt Motor Show, but also among the most enticing. The result of a global in-house design competition, Project 2&4 was envisioned by the company's motorcycle studio in Asaka and brought to fruition with help from the automotive studio in Wako. It's powered by the 1.0-liter V4 engine Honda developed for MotoGP competition, driving 212 horsepower and 87 pound-feet of torque through a six-speed, dual-clutch transmission. With less than 900 pounds to motivate, that adds up to blistering performance of the kind we'd give most anything to experience firsthand. The 14,000-rpm redline would be enough to make our heart sing all on its own, but the novelty of Project 2&4 is its design. As you can see, it hands the driver's seat and controls off the side, with room for a hold-on-for-dear-life passenger seat on the other side. The neo-retro styling is inspired by the company's RA272 grand prix racer from the Sixties, but gives up on the center driving position for an altogether more original configuration. The result looks ready to take on the likes of the Ariel Atom and BAC Mono... to say nothing of the curbs of Suzuka and Fuji. If only Honda were (able) to put it into production.

180,000 new vehicles are sitting, derailed by lack of transport trains

If you're planning on buying a new car in the next month or so, you might want to pick from what's on the lot, because there could be a long wait for new vehicles from the factory. Locomotives continue to be in short supply in North America, and that's causing major delays for automakers trying to move assembled cars.
According to The Detroit News, there are about 180,000 new vehicles waiting to be transported by rail in North America at the moment. In a normal year, it would be about 69,000. The complications have been industry-wide. Toyota, General Motors, Honda and Ford all reported experiencing some delays, and Chrysler recently had hundreds of minivans sitting on the Detroit waterfront waiting to be shipped out.
The problem is twofold for automakers. First, the fracking boom in the Bakken oil field in the Plains and Canada is monopolizing many locomotives. Second, the long, harsh winter is still causing major delays in freight train travel. The bad weather forced trains to slow down and carry less weight, which caused a backup of goods to transport. The auto companies resorted to moving some vehicles by truck, which was a less efficient but necessary option.