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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.

2016 Toyota RAV4 Hybrid electrifies with updated styling, more tech

Since the launch of the Prius, Toyota has been closely identified with hybrids and electrification. However outside of the rather niche RAV4 EV, the company hasn't brought the efficient tech to the smallest crossover in its US range. That all changes with the debut of the 2016 RAV4 Hybrid at the 2015 New York Auto Show, and the crossover launches alongside a thoroughly refreshed RAV4 lineup. Similar to the Lexus NX 300h, the RAV4 Hybrid combines a 2.5-liter, four-cylinder engine running on the Atkinson cycle and an electric motor, and both axles get power thanks to the standard Electronic On-Demand All-Wheel-Drive System. Toyota is keeping the exact technical specs about the CUV a secret until closer to the fall launch but admits the hybrid setup offers more than the 176 horsepower in the internal combustion model. The electric assistance means quicker acceleration and better fuel economy, as well. Beyond just the availability of the hybrid powertrain, the 2016 RAV4 gets sharper, more aggressive styling. The changes start at the nose where the foglights are recessed in the front bumper, and the design draws the eye across the lower grille. There are also reshaped lights at the rear and a redesigned lower bumper with silver skid plate trim. Inside, the improvements include niceties like better material quality, an added USB port up front and cupholders for tall mugs. While the styling looks great, Toyota is also seriously upgrading the available tech for its strong-selling CUV. Buyers can spec a full array of LED lighting, including the headlights, running lights and taillights. There's also the new Toyota Safety Sense suite that adds pre-collision braking, lane departure warning radar cruise control and more. For help with parking, the company has the four-camera Bird's Eye View Monitor, as well. The RAV4's trims carry over and get a new addition called the SE. Its biggest features are a retuned sport suspension, 18-inch wheels, contrasting exterior trim and a black headliner. It also comes fairly loaded with features with the aforementioned LED lights. With all of these changes, Toyota is continuing to take the crossover market seriously. Look forward to live images of the upgraded RAV4 from the Big Apple in the near future.

Toyota's Bob Carter says seat heater stop-sale due to inconsequential compliance error

Last week, Toyota let it be known that a number of its more-popular vehicles were subject to a "stop-sale" order due to faulty seat heaters on these vehicles. No injuries were reported, but the problem affected a lot of models, including the 2013 and 2014 Camry, Camry Hybrid, Avalon, Avalon Hybrid, Sienna, Corolla, Tacoma and Tundra. Toyota originally said 50,000 vehicles were involved, but Bob Carter, senior vice president of automotive operations for Toyota Motor Sales, knocked that down to 30,000 during an interview at the Chicago Auto Show this week and said that the problem is not going to have a big impact on Toyota's sales. "It's an important situation but it will have a very minor impact on February sales," he told AutoblogGreen. "Dealers will start receiving new heating elements this week and then we have a process to take out the heating element that was put in and exchange that for the new fabric. It's very simple. It's a quick repair." Quick in this situation means about three hours to swap out the heating elements in two seats, according to Toyota's John Hanson. Since the Avalon also has heated rear seats, that car will require a total of six hours in the shop. Hanson said there was no official timeline for when the exchange program would be completed, "but new vehicles are arriving at some dealerships with the new seat heaters already installed." With a fix already in place, Carter would not comment on whether a recall is likely, saying only, "I'm not the expert on that. We're working with the NHTSA and ultimately it's their decision. We believe it's an inconsequential compliance error that was made by one of our suppliers and we're going to correct it." Featured Gallery 2013 Toyota Camry Hybrid: Review View 23 Photos News Source: Toyota Green Chicago Auto Show Toyota AutoblogGreen Exclusive Hybrid camry hybrid bob carter