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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.

2015 Toyota Camry priced at $22,970*, Hybrid at $26,790*

We last saw the heavily revised 2015 Toyota Camry at the New York Auto Show earlier this year. Now, it's finally time for the best-selling car in the US to hit the roads in late September, and Toyota is announcing how much the updated model actually costs.
The basic Camry LE rings up for $22,970 (*not including a $825 delivery, processing and handling fee). That's up slightly from the base price of $22,425 for the 2014.5 LE, but the updated sedan has some 2,000 new parts, while also being 1.8 inches longer and boasting a 0.4-inch wider track. The rest of the trim levels include the SE for $23,840, sporty new XSE for $26,150 and XLE at $26,150. Opting for the V6 is the XSE and XLE bumps pricing to $31,370.
Separately, the Camry Hybrid gets its own LE, SE and XLE trims. The LE starts at $26,790 with a standard, power driver's seat and 4.2-inch information display. The SE for $27,995 gets an improved interior and the XLE at $29,980 has leather, heated front seats, LED running lights and more.

Oh, Kei Go: Toyota set to enter JDM minicar market?

Toyota is looking to get bigger... by going smaller. The Japanese automaker is looking to enter the kei car market, a popular segment in its homeland. Kei cars are small vehicles with restrictions on length (11.15 feet), width (4.86 feet), engine size (660 cubic centimeters) and power output (63 horsepower). Currently, Toyota is the only Japanese automaker not producing vehicles for this segment, but that is set to change, according to a report from The Wall Street Journal.
Thanks to its relationship with Daihatsu, Toyota can jump right into the kei car game. Daihatsu is one of the largest producer of kei vehicles and it is currently owned by Toyota.
Although kei cars are restricted in terms of size and power, they are not restricted by technology. Automakers utilize different drive configurations, powertrains and amenities to keep their cars fresh. Daihatsu and Toyota plan to work together to produce Toyota-branded kei cars. The two companies will utilize Toyota's knowledge of electric and hybrid systems to produce efficient little vehicles for the Japanese market.