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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, Honda CR-V and an Autoblogger's BMW Z3 | Autoblog Podcast #620

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by West Coast Editor James Riswick and Road Test Editor Zac Palmer. First, they talk about the cars that have been in their driveways, like the Mazda6, Lexus UX 250h and Honda CR-V, as well as Riswick's own BMW Z3 (where he actually recorded the podcast from). Then they discuss the news, which includes car dealers moving to digital commerce and other updates about — you guessed it — coronavirus, and how it's affecting the automotive industry. Finally, they take to Twitter to help a follower choose a weekend convertible for long, isolated drives in this week's "Spend My Money" segment. Autoblog Podcast #620 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2020 Mazda6 Signature 2020 Lexus UX 250h Honda CR-V 1998 BMW Z3 2.8 Virtual dealers Coronavirus update Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:

Driving classic Mazdas to experience the weird and wonderful rotary's triumph

AUGSBURG, Germany — Everything weird and wonderful about Mazda's relationship with the Wankel rotary engine is embodied in the delightful 110S Cosmo Sport of 1967. Just shy of 1,200 were built and, for most of its life, it remained a Japanese curio. Driving one is a rare privilege, and yet here I am, leading a convoy of owners through Bavaria away from a private museum holding the most extensive collection of Mazdas outside of Japan. Created by local franchise holder Walter Frey, what started out as a business relationship in the 1970s has blossomed into a lifetime love affair. Whether the residents of Augsburg are quite so enamoured is another question. As I leave the museum I pass a sign proclaiming my entry into an "umwelt zone" for low-emissions vehicles. The oil-tinged plume of smoke in my wake rather makes a mockery and underlines one reason there are no rotary engines in the current Mazda product range. Created by a German but perfected by the Japanese, it seems appropriate to celebrate the association with the Wankel engine here. Mazda may have gone on to sell nearly 2 million rotary-engined cars to the world — the U.S. included — but 50 years ago it brought two Cosmos to the Nurburgring and entered them into the grueling Marathon de la Route as a proof of concept. After 84 hours of continuous running and a fourth-place overall finish, Mazda had demonstrated to the world a rotary could stay the distance. I have a slightly less grueling schedule but look forward to following the instructions to rev the hell out of the Cosmo to clear the smoke out of its system. Those following me will certainly be hoping this does the trick. A thirst for oil as well as gasoline isn't the only rotary trait. The two chambers of its motor displace 491 cc apiece, equivalent to about 2.0 liters in a regular reciprocating design. In this second-series car, it delivers around 128 horsepower, which drives the rear wheels through the transmission's five gears. There doesn't seem to be a whole lot of progress in any of them, truth be told, the characteristic lack of torque making for more noise than meaningful acceleration. It's a small car and weighs just more than 2,000 pounds, with a power-to-weight ratio not far off that of an original NA Miata. But it's one for carrying speed, not building it. The wood-rimmed Nardi wheel is one piece of luxury in an otherwise functional, vinyl-trimmed cabin, and through it the Cosmo has a nice blend of stability and agility.