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Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

Here's what you had to say about the Tokyo Motor Show

We obsessively covered the 2017 Tokyo Motor Show. You, our readers, provided the color commentary. Read on and, of course, leave your comments below. Subaru Viziv Performance Concept: Remember the WRX concept they showed in 2013, and what the production version looked like in 2015? Pepperidge Farm remembers. wooootles 2 foot high wing on the trunk or gtfo :) sc0rch3d Mazda Kai Concept : Dear Honda, this is how you dynamically style a hatchback. Thank you. Dfelix70 Kudos to KODO design. There are so many things I love about this "Kai" car: the awesome split panoramic sunroof, the Jaguar-esque tails (sporting an "eyebrow up"... ala The Rock), a sleek family resemblance to the already beautiful CX-5 and CX-9. Seems suspiciously close to being a production ready Mazda3 — save for a few fanciful bits (door handles, mirrors etc). If it doesn't get too watered down by the time it hits the streets ... take my money! Randy Ross Mitsubishi e-Evolution Concept: As an 06 IX and 12 X owner, this is so upsetting. I will never buy this or care to give it another look. Hope you are glad you killed my favorite track-ready car to produce this electric junk. AcidTonic Picture the GT-R going away for a few years and coming back as an SUV. This is ridiculous. Surely someone in marketing could've came up with another cool name. Evo The Evo sedan is dead, whether this exists or not. I don't mind. Lada1200 Honda Sports EV Concept : I sure would like to see this "less is more" design aesthetic spread to their gas-powered production line. RustyShackleford Love it. I see glimpses of late 1970 Scirocco with Honda flair. Gintonics I just want ONE question answered in the affirmative, and that is... "RWD?" Henadenk AND A FEW FROM FACEBOOK: Toyota's press conference: Wake me up when they talk about the Supra. David Levinson Yamaha Cross Hub Concept: All I can think is modern day Brat, which has its own kind of charm. I'm assuming that it's a unibody design, but it seems happy to be its own thing rather than that crossover pretending to be a pickup called the Ridgeline. Would definitely take the Yamaha over the Honda, although I doubt it'll come to the states. Cole Henry Mazda Vision Coupe Concept: Face: KIA K7, Tail: Aston martin. Harold Shin A bit British, no? Jim Lykas Related Video: News Source: Honda, Toyota, YamahaImage Credit: Subaru, Mazda, Mitsubishi Auto News Green Tokyo Auto Salon Tokyo Motor Show Honda Mazda Mitsubishi Subaru Toyota 2017 tokyo motor show

Honda sets record for lowest fuel consumption in Europe

If fuel economy over a long distance is of paramount importance, diesel continues to be a fantastic choice of fuel. Honda is the latest company to show that by earning a Guinness World Record for the lowest consumption in a car across the 24 contiguous countries of the European Union. The company's Civic Tourer wagon with a 1.6-liter i-DTEC diesel managed the equivalent of 83.5 miles per gallon over 8,387 miles. The 25-day journey was undertaken by Fergal McGrath and Julian Warren – members of Honda's European research and development team. They started from Belgium on June 1 and returned there on June 25 having driven around 7.5 hours each day. Over nearly a month of driving, their wagon only needed its tank filled nine times, and it averaged 932 miles between visits to the diesel pump. The Civic's results are impressive no matter how you look at it. The wagon handily beat the model's stated fuel economy of 61.9 mpg. The crew also beat the recent US record of 81.17 mpg over 8,233.5 miles in a Golf TDI for the best non-hybrid mileage across the 48 contiguous states. Guinness required that the Civic be unmodified from the standard car, and the same two drivers had to pilot it the whole way. The economy was certified via several redundant pieces of evidence, including a logbook, GPS, video, and photographs. McGrath and Warren credited their success to good route planning and smooth driving. Honda sets new GUINNESS WORLD RECORDS™ title for fuel efficiency, averaging 2.82 liters per 100km (100.31mpg) in 13,498km (8,387 mile) drive across 24 EU countries July 7, 2015 - Honda has set a new GUINNESS WORLD RECORDS title for 'Lowest fuel consumption – all 24 contiguous EU countries (all cars),' recording an average 2.82 liters per 100km (100.31mpg) over 13,498km (8,387 miles), in a 25 day drive across all 24 EU contiguous countries. Behind the wheel of a Honda Civic Tourer 1.6 i-DTEC for the entire journey were two members of Honda's European Research & Development (R&D) team, Fergal McGrath and Julian Warren, who took on the challenge to further demonstrate the impressive real-world fuel economy of the Tourer. The remarkable distance travelled is similar to the team driving to Australia from their home in the UK, stopping just nine times to refuel. The car achieved an incredible average 1500km (932 miles) on each tank of fuel, at a total fuel cost for the whole journey of just 645 Euros* (GBP459).