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Lexus NX will be produced in Canada

OTTAWA/MONTREAL — Toyota Motor Corp will build its Lexus NX luxury crossover vehicle at a Canadian plant starting in 2022, the company said on Monday, a decision that Prime Minister Justin Trudeau said demonstrated the value of the country's international trade agreements. The plant will invest hundreds of millions of dollars to produce the Lexus NX and its hybrid version at the factory in Cambridge, Ontario, "supplying the entire North American market," Trudeau said in a presentation with Fred Volf, president of Toyota's Canadian unit. Citing Canada's trade agreements with Mexico, the United States, Europe and Asia, Trudeau said: "We have preferential trade access to two-thirds of the global economy. In fact, we're the only G7 country that has free trade deals with every other G7 country." Trudeau, who faces a tough re-election contest in October, said the plans by Toyota, one of the world's largest carmakers, will help guarantee 8,000 jobs and the factory. The announcement is a "counter narrative" for Canada's automaking industry following recent bad news from other automakers, said Flavio Volpe, president of the Toronto-based Automotive Parts Manufacturers' Association, especially in the province of Ontario. Fiat Chrysler Automobiles NV said in March it would cut a shift at its Windsor assembly plant, leading to 1,500 job losses, and General Motors said last year it would shut its Oshawa factory by the end of 2019. Plans to assemble the NX in Canada "means that Toyota's Canadian manufacturing operations are here to stay," Volf said, adding that the cars are "the most technologically advanced and the most in-demand cars in the Toyota-Lexus global lineup." On Sunday, Trudeau hosted Japanese Prime Minister Shinzo Abe in Ottawa. Both touted the benefits of a Pacific trade deal that U.S. President Donald Trump walked away from. Trudeau said he had discussed the project to build the Lexus NX in Canada with Chief Executive Akio Toyoda on April 1. "When we last chatted just a few weeks ago, we discussed the potential of this new Lexus mandate," Trudeau said.

Jonas wreaks havoc on auto industry

Many folks along the East Coast are still stuck at home from Winter Storm Jonas' brutal snowfall over the weekend, but the blizzard had some nasty temporary effects on the auto industry, too. Winter weather emergencies kept people from leaving the house, and that spelled trouble for factories and dealers. The terrible conditions in Washington, DC, even prevented the the Washington Auto Show from opening. General Motors, Toyota, and BMW had to close factories due to the weather. BMW cited concerns for its workers driving to the plant for canceling some Friday and Saturday shifts in Spartanburg, SC, according to Automotive News. Toyota closed its Georgetown, KY, factory on Friday, and GM shut down the second shift at its Bowling Green, KY, site for that day, too. Showrooms in the blizzard's path saw a massive drop in sales over the weekend because the customers weren't coming. Some affected dealers are now trying to make the best of a bad situation by offering potential buyers even deeper discounts to get them through the door, according to Automotive News. The piles of snow also mean hours of work for employees to clean off all the cars on the lot. The good news is that none of these issues should pose longterm problems. Weather reports don't show much snow for the East Coast in the coming days, which should allow the industry quickly to return to normal.

Five automakers now being investigated by NHTSA for airbag woes

It appears that Toyota's renotification to owners of recalled vehicles from last year is just the tip of the iceberg for what could potentially be a much larger industry-wide recall. The National Highway Traffic Safety Administration is opening a preliminary evaluation investigation into roughly 1.1 million vehicles from Chrysler, Honda, Mazda, Nissan, Toyota and parts supplier Takata regarding faulty airbag inflators in several models.
NHTSA has received six reports - three directly, two from Takata and one from Toyota - of vehicles with ruptured airbag inflators from 2002-2006, which resulted in three injuries. So far, all six incidents have occurred in high humidity areas like Florida and Puerto Rico. According to Toyota's latest recall announcement, the inflators may have an improper propellant that could cause it to rupture in a crash and the bag to deploy abnormally.
This new investigation follows a previous recall from April 2013 of about 3.4 million vehicles worldwide for the airbag inflators from Takata. As Autoblog reported, Toyota jumpstarted the new situation when it found that the original list of serial numbers for the faulty part was incomplete and discovered more cars in need of replacement. Honda and Nissan told us that they were investigating whether further models would need called in again as well. Mazda told Autoblog: "Regarding the current Takata situation, we're working closely with NHTSA and investigating the situation, but nothing else to report at this time." Chrysler Group responded to us with the statement: "Chrysler Group engineers are conducting the appropriate analysis. The Company will cooperate fully with the National Highway Traffic Administration."