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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.

A closer look at the motorcycle El Chapo used to escape prison

Joaquin Archivaldo Guzman Loera, better known by his nickname, El Chapo, stands five-feet, five-inches tall. This defining trait – his nickname, not coincidentally, can be translated as "Shorty" in Spanish – is an important detail in his escape, as the tunnel that stretched a mile underground that led the drug kingpin to safety measures just one inch taller than Guzman's height. Clearly, this was a well-planned and executed escape. The tunnel that was custom-sized to perfectly fit El Chapo started at an abandoned building in the middle of an empty field and ended in a tight shaft that led to the shower stall in Guzman's jail cell. In between those start- and finish-points was an impressively dug-out hole in the Earth, complete with ventilation shafts, wiring for electricity and lights, and rails on the bottom to serve as tracks for a custom-built motorcycle that El Chapo apparently rode to freedom. There are specific traits that could be useful in figuring out what kind of motorcycle we're looking at. All of these facts are well-known to anyone who's been following the story of how the most notorious criminal in Mexico could escape from a maximum-security prison in broad daylight. Especially considering that this event marks the second time since 2001 that Guzman has arranged his own prison break. There's one detail, though, that has caught our attention. A close look at the images released by Mexican authorities shows us a motorcycle that's been heavily modified specifically to work underground. We can't be certain, based on the grainy shots and limited viewing angles of the pictures we have access to, but there are some specific traits that could be useful in figuring out what kind of motorcycle we're looking at. For starters, there's the engine. It's a single-cylinder, air-cooled powerplant, canted slightly forward. The exhaust exits on the right side of the bike, when looking from above, and there's a short chain guard on the opposite side. Granted, that doesn't narrow it down all that much. A look at the shape of the fins on the cylinder and the shape of the head, though, makes us think this may be one of Honda's ubiquitous CG-series of engines. A quick look at the bike's frame shows a single downtube, dual shocks and a steel-tube swingarm. That means it's probably not of particularly recent vintage, but we can't really pinpoint exactly what model it may be.

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.