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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 working on lithium-ion batteries to replace lead-acid starter batteries

In the quest for ever better fuel economy, car companies are looking for every single advantage possible, no matter how small. This is evident in everything from active grille shutters to the 48-volt mild-hybrid electric assist systems like that in the new Ram 1500. For Mazda, the latest target for potential efficiency gains is the lowly 12-volt starter battery. The company announced that it is partnering with two other companies, ELIIY Power and Ube Industries, to develop a lithium-ion starter battery that would be used on mainstream models in place of conventional lead-acid units. Mazda plans to have them ready for use by 2021. The advantage here would be that 12-volt lithium-ion batteries would be much smaller and lighter than the lead-acid ones they replace. And lighter cars don't need as much fuel to move around. Plus, as an added benefit, making cars lighter also often makes them faster and better handling. This is why companies such as Lotus and Porsche have offered optional lithium-ion 12-volt batteries for some lightweight sports cars. A potential downside to the use of these batteries is increased cost. Lead-acid batteries from your local parts store will run you between $100 to $150. AGM batteries could be between $200 and $300. As for lithium-ion batteries, Lotus introduced the option on the Evora 400 in 2016, and the option cost $1,690. Odds are that a company such as Mazda won't be absorbing all those costs, meaning that the cost of these future Mazdas could increase with a change from lead-acid to lithium ion. Related Video:

Mazda ad showing Facebook updates while driving criticized by Senate committee [w/video]

Senate Commerce Committee Chairman Jay Rockefeller, D-WV, held an all-day summit on Thursday to discuss the dangers of using modern technology while driving, during which an ad that Mazda aired during the Super Bowl was used as an example of the worrisome future towards which we're headed. While seemingly innocuous at first glance, the ad, which can be seen below, shows a brief glimpse of a driver using the Mazda Connect infotainment system in a Mazda3 to check/update his Facebook page while driving down the road.
Officials from major communications companies like Samsung, Google and Apple attended the summit, as well as representatives from automakers including General Motors and Toyota. A representative from Mazda was not present despite the company's own currently available technology being used as the poster child for the issues being discussed.
According to Automotive News, Senator Rockefeller warned the automaker and communication execs on hand that he will propose legislation to regulate the use of technology while driving if they don't work together to implement their own standards more quickly. Michael Robinson, GM's vice president of sustainability and global regulatory affairs, argued that his company has had distracted driving guidelines in place for 15 years since the advent of its OnStar system, noting that the technology in question has also helped the automaker save lives through automatic crash detection and calls to 911.