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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:

Honda Expands Takata Airbag Recall To 5.4M Units In The US

While Honda already announced plans to take its front driver's side Takata airbag inflator recall nationwide, the automaker has now officially reported on the number of affected vehicles and the specific models in need of repair. The expanded campaign covers an estimated 5.4 million units across the US, including those already being fixed under the previous regional actions. That number is an expansion of the five million units initially reported by NHTSA. The affected models under the nationwide recall are the 2001-2007 Accord with a four-cylinder engine, 2001-2002 Accord V6, 2001-2005 Civic, 2002-2006 CR-V, 2003-2011 Element, 2002-2004 Odyssey, 2003-2007 Pilot, 2006 Ridegline, 2003-2006 Acura MDX, 2002-2003 TL and 2002 CL. For customers who expressed concern about their vehicle's safety, Honda had already been replacing the inflators nationwide. It's possible for the inflators in these vehicles to rupture when inflating the airbag, spraying metal fragments at occupants. This problem has been blamed for at least five deaths worldwide and at least 139 reported injuries. In its statement, Honda said that it worked with Takata to test the recalled inflators in the original high-humidity recall regions, and there were no abnormal deployments in these evaluations. Honda will begin notifying owners by "over time," according to its statement. Priority will be put on the geographic areas with the highest risk of ruptures. Those in the original recall region were contacted in September. Earlier in December, Honda partnered with Autoliv to supply the automaker with replacement inflators for this campaign. Autoliv predicted it would take six months for deliveries to start. Takata also increased its production of substitute components. Scroll down to read the company's announcement of this nationwide expansion. Statement by American Honda Regarding National Safety Improvement Campaign: Driver's Front Airbag Inflator Supplied by Takata Dec 8, 2014 - TORRANCE, Calif. Honda will voluntarily expand a regional Safety Improvement Campaign initiated in June 2014 (NHTSA No. 14V-351) into a national Safety Improvement Campaign affecting certain 2001 through 2011 Honda and Acura vehicles in the United States to replace the driver frontal airbag inflator, free of charge. Honda is expanding this Safety Improvement Campaign to address concerns raised by its customers whose vehicles were not included in the regional campaign.

Next-gen Honda Accord PHEV may have 39-mile EV range [UPDATE]

UPDATE: Disregard what The Asahi Shimbun said on this. The paper apparently conflated the upcoming Clarity-based PHEV and the non-plug Accord Hybrid and has since updated its article. We got an email from Honda clarifying the situation: The refreshed Accord Hybrid, slated to launch in the middle of this year, will not have a plug-in variant. Honda will bring a new, dedicated plug-in hybrid to market by 2018 that leverages the same platform that underpins the upcoming Clarity Fuel Cell. This new PHEV will feature more than triple the 13-mile electric range of the last generation Accord Plug-in Hybrid. We apologize for the error. Honda's next-generation Accord Plug-in Hybrid could triple the previous model's electric driving range when the new one debuts in the US in 2018. To achieve such a significant improvement, the company would equip the PHEV with a higher capacity battery of the same physical size and more efficient electric motors, according to the The Asahi Shimbun. The next Accord PHEV could drive the equivalent of 68 miles in EV mode, the newspaper claims. However, we believe this figure comes from the Japanese test on electric models, which produces higher figures than the US evaluation. Tripling the 2014 Accord Plug-in's EPA-estimated 13-mile range suggests a number closer to 39 miles when the new generation reaches this country. A figure around 39 miles would still make the 2018 Accord a contender among the current PHEV sedans. For example, the EPA rates the Hyundai Sonata Plug-in at a 27-mile range and estimates the Ford Fusion Energi at 20 miles. The latest Chevrolet Volt, which would likely be smaller than the Honda, wins out with 53 miles of driving distance, though. Honda plans a new pure EV and PHEV in its US lineup by 2018, and the plug-in shares a chassis with the upcoming FCEV fuel cell sedan. The next-gen Accord would give the company another flavor of PHEV to offer customers, too. American Honda Motor Executive Vice President John Mendel told Autoblog last year the company would update the standard Accord Hybrid in 2016 and introduce the next PHEV variant here in 2018. Related Video: