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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's I Like Sports ad will have you reaching for your pom-poms

Autoblog editor Greg Migliore recently wrote a great piece looking at the burgeoning re-emergence of Honda as the performance brand. Now, the company is showing some reasons why that really might be the case, with a short ad from Japan titled I Like Sports. The commercial acts as a showcase for Honda's performance prowess on the street and around the track from the recent past, present, and the near future. The spot gives the company's models a chance to show why they are worth getting excited about. There are glimpses of vehicles like the Japan-only S660, upcoming Civic Type R, S2000, the preceding and forthcoming NSX, the MotoGP bike, and Formula 1 car. Despite being just a minute long, the ad does a great job at hinting at a brand that can appeal to people who want a little excitement during a drive.

Remembering the glory days of the Honda Civic Si

In addition to watching host John Davis slowly age over his decades on the show, MotorWeek's Retro Review series on YouTube allows us to look back on some of the favorite models of yesteryear to see their evolution toward present day. Take the 1989 Honda Civic Si for example, which is newly featured. The name is still on the market, and the current model boasts 205 horsepower and 174 pound-feet of torque from its 2.4-liter four-cylinder. However, the current Si is being left behind in power by other performance compacts like the latest Volkswagen GTI, Subaru WRX and Ford Focus ST. Back in 1989, the Civic Si was still something of an upstart in the hot hatch ranks and definitely had something to prove. Remember, this was a about decade before the tuner boom of the late '90s gave these Hondas massive popularity. Though, the writing was on the wall for eventual success, based on the MotorWeek review. The show called it "stylish" and was attracted to vehicle's sharp handing, even with no power steering. Like today, power was lacking compared to major competitors like he VW GTI, but Honda's 1.6-liter four-cylinder with 108 hp and 100 lb-ft still received some praise. As always, it's fascinating to see how these now beloved models stack up when looking back. The high-performance Civic might be due for another surge in popularity too, if the forthcoming Type R from Europe ever makes to the US. News Source: MotorWeek via YouTube Honda Hatchback Performance Classics Videos honda civic si