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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.

Mazda RX-Vision Concept revives the rotary

Mazda continues fighting to keep the rotary alive, and with the RX-Vision concept at the 2015 Tokyo Motor Show, the company unveils its dream for the engine's revival in a curvaceous sports coupe. Before any fans burst with excitement at the prospect, Mazda only "hopes" to have this gorgeous shape available in showrooms someday, for now. The RX-Vision starts with the classic elements of a front-engine, rear-wheel drive sports coupe by combining a long, low hood, short rear deck, and a passenger compartment way at the back. From there, Mazda's stylists add the swooping touches of the brand's Kodo design language. The result looks thoroughly modern and still subtly evokes generations of the RX-7 in the sculpted fenders and flowing roofline. Under that shapely hood hides Mazda's next-generation rotary, which the company has dubbed the Skyactiv-R. Unfortunately, details about it are quite scarce at the moment, including the displacement or even the number of rotors the engine uses. Still, Mazda is abundantly clear that development of the mill is very much moving forward. Mazda's designers opt for a retro flair inside with the deeply dished steering wheel and gauges in three pods. The rest is simple and elegant with a minimalist, metal gearshift rising from the center console and leather straps for door pulls. Finishing things off is a clean mix of red and black upholstery with a little carbon fiber for contrast. Expect live shots from Tokyo soon to show how the RX-Vision looks under the lights. Related Video: Mazda Reveals Mazda RX-VISION Concept -- Powered by next-generation rotary engine SKYACTIV-R, represents Mazda's vision of the future -- HIROSHIMA, Japan—Mazda Motor Corporation unveiled the rotary-powered Mazda RX-VISION sports car concept at the Tokyo Motor Show*1 today. The rotary engine is a symbol of the company's "never-stop-challenging" spirit. RX-VISION represents a vision of the future that Mazda hopes to one day make into reality; a front-engine, rear-wheel drive sports car with exquisite, KODO design-based proportions only Mazda could envision, and powered by the next-generation SKYACTIV-R rotary engine. Rotary engines feature a unique construction, generating power through the rotational motion of a triangular rotor. Overcoming numerous technical difficulties, Mazda succeeded in commercializing the rotary engine, fitting it in the Cosmo Sport (known as Mazda 110S overseas) in 1967.

Suzuki recalls 2 million cars globally

Suzuki is recalling two million vehicles across the globe, including a number of Chevrolet Cruze sedans that it builds for General Motors, because the ignition switches may begin to smoke. None of the Cruzes being recalled were sold in the US, though. This recall is limited to the Japanese, European and Australian markets. In Suzuki's home market, 1,873,000 vehicles are being recalled, including the Cruze and a number kei cars built for Mazda (the Carol and AZ-Wagon), as well as the automaker's own Alto, Wagon R and Swift. Affected vehicles were built between 1998 and 2009. The remaining 133,000 vehicles include Cruzes and other Suzuki products sold in Europe and Australia. There have been no reports of injuries or accidents due to the 67 reported incidents, all of which come from the Japanese market, a Suzuki spokesperson told Automotive News. Related Video: