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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.

Mazda6 diesel is coming, too, Mazda promises (again)

As we noted our piece earlier today about the CX-5 diesel, we've been waiting for Mazda to bring its Skyactiv-D engines to market for years. Tripped up by an emissions certification nightmare that caused delays and resulted in lackluster power and fuel economy numbers, they're late to the party. In the CX-5 diesel, it's also a questionable proposition at almost $4,000 more than the much more powerful CX-5 Turbo. But today, Mazda's U.S. president confirmed to Autoblog that the diesel engine would make its way into the 6. Like the CX-5, it'll only be offered with all-wheel drive and only on the top Signature trim level. Unlike the CX-5 diesel, which goes on sale in July, we don't know when the Skyactiv-D-powered 6 will go on sale. But it seems like later this year is a good bet. How much longer can Mazda wait, really, once the CX-5 diesel is on sale? The diesel Mazda6 will use the same 2.2-liter engine as the CX-5. It'll probably offer the same power figures – 168 horsepower at 4,000 rpm and 290 pound-feet of torque from a low 2,000 rpm, with a 5,500-rpm redline. The fuel economy bonus for choosing a diesel over the turbocharged gas engine should roughly parallel the difference in the CX-5: about 5 mpg in the city and 3 mph on the highway. That said, we don't know the 6's EPA fuel economy numbers yet. We expect the price premium to roughly parallel the CX-5 as well, so the diesel will likely be several thousand dollars more than the gas turbo engine in the same Signature trim. These are educated guesses, of course, and when we have firmer numbers or solid estimates from Mazda we'll let you know.

Mazda CX-5 named Japan's Car of The Year, Subaru BR-Z wins "Special Award"

The Mazda CX-5 stamped its Kodo design and SkyActiv technology authority all over the Japan Car of the Year awards, taking the top prize ahead of the Subaru BRZ/Toyota GT 86. It is Mazda's second victory in the last ten years, the 2005 MX-5 claiming the same trophy, and the fourth time the Hiroshima company has won.
The award is decided by 60 local "automotive experts and journalists," and open to any passenger car released in Japan from November 1, 2011 to October 31, 2012 that has sold more than 500 units. Each judge gets 25 votes, his or her top vote getting 10 points, the rest of the points being spread among the judge's choice for the next best four cars.
The second-place getters were the Toyobaru twins with 318 votes, the surprise being they didn't beat or get any closer to the crossover. The Subaru BRZ did claw some mojo back, earning the Special Award given to cars that have made "an exceptional impact." The BMW 3 Series was third overall and won the Import Car of the Year award with plenty of room between it and the second place Range Rover Evoque.