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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 engineer wants new rotary to be turbocharged

Hope springs eternal for Mazda to revive the high-revving Wankel engine for a new sports car, and the company keeps feeding that thirst with hints that it could happen. To make the possibility even more tantalizing, Mazda drivetrain and powertrain assistant manager Tetsushi Marutani tells Motoring that he wants the updated mill to pack a turbocharger. "Personally, I think that a rotary with some turbo or compressor would be good," Marutani said to Motoring. "Because a rotary, in my opinion, they require more [torque at] low speed, low down torque. So if we have some small compressor or turbo it would help." Mazda hasn't sold a rotary-powered model since the RX-8 and hasn't had a turbocharged one since the third-generation RX-7. However, the recent RX-Vision concept (above) at least hinted at a possible Wankel revival, and Mazda officials confirmed that its engineers continued to develop the engine since the RX-8's demise. The RX-Vision used a next-gen rotary called the Skyactiv-R, but Mazda didn't officially confirm any details about it. Rumors suggested the engine had a two-rotor layout with a total displacement of 1.6 liters. A two-stage electric turbo and hybrid powertrain would allegedly boost the total output of around 450 horsepower. The electric assistance could also counter the Wankel's lack of torque at low revs and poor fuel economy. Those rumored specs sound fantastic, but we still take the rotary's return with a grain of salt. Mazda CEO Masamichi Kogai is adamant that it's not worth the company's limited resources to develop a niche sports coupe instead of better selling vehicles. Related Video:

J.D. Power dependability survey is out, but you shouldn't depend on it

J.D. Power has just released its latest automotive dependability survey, which of course has usual suspects Buick and Lexus ranking high. Those are safe and solid findings, surely. But when you look a little closer, there are curiosities. Our Consumer Editor, Jeremy Korzeniewski, offered an explanation a couple of years back for why this survey should be viewed with a degree of skepticism, and his take is worth a re-read. What jumped out at Jeremy were the relatively low spots assigned to Mazda, Subaru and Scion among the ranking of makes. Back in 2016 when he wrote his piece, they were ranked 21st, 23rd and 24th respectively. In this year's survey, Mazda ranks 15th and Subaru 26th, both below the industry average of 142 reported problems per 100 vehicles. (And Scion, of course, is in car-brand heaven.) Now, part of what is going on here is surely the fact that all automotive brands are producing dependable vehicles compared with years gone by, so the degree of variance between the best and worst on the list is not as great as it once was. "For the most part, automotive manufacturers continue to meet consumers' vehicle dependability expectations," Dave Sargent, a J.D. Power vice president, said in a statement. "A 9 percent improvement is extremely impressive, and vehicle dependability is, without question, at its best level ever." That said, when a brand like Subaru, regarded by many as mechanically bulletproof, ranks 26th, it leaves people who know cars scratching their heads. Something there does not compute. The problem, as Jeremy pointed out, is one of methodology: When he wrote his piece, there was no weighting assigned to the problems reported in the survey. And that still appears to be the case. Therefore, a problem with an infotainment system or a loose piece of trim is deemed as serious as a blown engine or leaky transmission. (And yes, infotainment is still the biggest problem across the board.) Jeremy's point: If the categories of problems were weighted, you'd see a different picture. When you look at the Consumer Reports brand rankings (subscription required), you get a very different picture. in CR's rankings, Subaru is No. 6 among brands, which, well, sounds a lot more like it. CR singles out the redesigned 2017 Impreza as a car with some new-model problems. (The BRZ had the fewest.) The two surveys jibe a little more closely when it comes to Mazda, which CR ranks 12th, a drop of six places from previous-year rankings.