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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

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.

2017 Mazda CX-9 packs turbo power, fresh style

After nearly a decade of sales, Mazda finally introduces the second-generation CX-9 crossover. It delivers a comprehensive interior and exterior overhaul, blessing the CX-9 with a powerful, efficient Skyactiv powertrain, and instilling even more of the sporting character that makes Mazdas so darn charming. Like every other vehicle in Mazda's catalog, the CX-9 now wears the handsome, suave stylings of the company's Kodo design language. We think it looks great, but feel free to disagree in Comments. The second-generation CX-9 is the perfect example of Mazda's growing interior design prowess. As is so often the case, it's not so much the style but the choice of materials that stands out. Nappa leather can be paired with real Japanese rosewood and aluminum accents to craft a cabin that feels far more expensive than what you might expect from Mazda. The quality is impressive, even on the pre-pre-production prototypes we tested (drive impressions coming soon). The other headline, aside from the gorgeous interior, is the powertrain. The heart and soul of the operation is a new 2.5-liter, turbocharged Skyactiv engine. Although it only produces a modest 250 horsepower, that figure is complemented by a whopping 310 pound-feet of torque. Importantly, torque is easy to access in the lower part of the rev range, with peak twist coming in at just 2,000 rpm. It drops off rather suddenly north of 4,000 rpm, but as Mazda tells it, most consumers rarely venture above that figure. Mazda expects the CX-9's core market to be perfectly happy with the robust low-end output. A six-speed automatic is responsible for doling out that grunt, and is meant to play nicely with the same i-Activ predictive all-wheel-drive system found in the CX-5 (although the two cars don't share any AWD components). Using 22 different sensors, the system measures road conditions 200 times every second and will even send up to half the engine's power to the rear axle. The entire car, meanwhile, rides on the same Skyactiv architecture as the CX-5 and Mazda6, meaning a multi-link rear suspension has been paired with MacPherson struts up front. Eighteen-inch wheels will be standard, although 20s will also be on offer. You can expect to hear much more on just what the new CX-9 is like to drive next week. Until then, enjoy the official images from Mazda, and keep an eye open for live shots from the LA debut, headed your way soon.