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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.

Toyota recalling 1.9M Prius models globally for software update

Toyota has announced a set of voluntary recalls covering 960,000 Prius, RAV4, Tacoma and Lexus RX350 models in the United States to address two separate issues. Worldwide, Toyota will have to recall a total of 1.9 million Prius cars.
The Prius recall affects about 700,000 2010-2014 models in the US, due to a fault in the motor/generator control ECU and hybrid control ECU software. It says that the current software could result in high temperatures on certain transistors and possibly damage them. When it fails, the error forces the car into failsafe mode. Toyota says that in rare circumstances, it could even shut the hybrid system down while the car is being driven.
Toyota spokeswoman Shino Yamada told Automotive News that the software update should take about 40 minutes, and dealers would start to be notified about affected vehicles today. She also told them that the first reported glitch occurred in May 2011 in the US when the system overheated and the car entered failsafe mode. The affected cars were built between March 2009 and Feb. 5, 2014, according to Automotive News. Toyota says that it has received no reports of accidents or injuries caused by either fault.

2019 Subaru Forester Sport vs 2019 Toyota RAV4 Adventure: How they compare

The 2019 Toyota RAV4 is not only completely redesigned, but reimagined as well. As we detailed in our first drive review, the new RAV4 ditches the more car-like and uber-utilitarian nature of its predecessor for something that's more SUV-like and characterful. It's a new direction exemplified in the RAV4 Adventure trim, which specifically targets those folks who plan to actually take their compact crossover to the great outdoors. People who will get it dirty, use the extra ground clearance and store things on the roof. You know, the sort of people who would consider the 2019 Subaru Forester. It too is redesigned for 2019, but its transformation is almost unnoticeable compared to the RAV4's. Forester customers were obviously quite happy with the way things were. We got a chance to drive both the 2019 RAV4 and 2019 Forester back-to-back last week both on-road and off-road, so let's take a look at how they compare, including a look at their on-paper specs. 2019 Toyota RAV4 Adventure View 31 Photos Performance and fuel economy The Forester got a new, more powerful 2.5-liter flat-four engine for 2019, and it now comes standard with a continuously variable transmission. It produces 182 horsepower and 176 pound-feet of torque, which is pretty much mid-pack among compact crossovers. Crucially, though, throttle response is so sharp that it makes the Forester actually feel quicker than it is when accelerating from a stop — a sensation enhanced even further by selecting the Sport Sharp mode button on the steering wheel. However, in either mode, the engine's remarkable power reveals itself as the tachometer and speedometer wind toward higher digits. One must also deal with the Forester's CVT. Perhaps some may appreciate the smooth, uninterrupted acceleration that results from a lack of gear changes (nor even simulated ones as in some other company's CVTs), but others may find it unusual and irritating. Subaru's CVT is certainly not our favorite example. By contrast, the 2019 RAV4 is conventional with its 2.5-liter inline-four engine and eight-speed automatic transmission, which behaves just as normally and effectively as one expects. The RAV4 is also considerably more powerful at 203 hp and 184 lb-ft — both compared to the Forester and to the entire segment as well. As a result, its acceleration is stronger (likely a difference of a half-second in 0-60-mph time) even if it may not initially feel like it.