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Sony Honda EV venture's plan for online sales has dealers squirming

TOKYO/DETROIT — A new joint venture formed by Japan's Sony Group Corp and Honda Motor plans to introduce a premium electric vehicle later this decade, and the automaker's U.S. dealers are anxious to be part of the sales process. Sony Honda Mobility said on Thursday it was aiming to deliver the first of the unnamed EV by 2026, starting in the United States, and will sell them online. The success of Tesla at selling EVs without franchised dealers is putting pressure on established automakers to overhaul their retail networks. That leaves dealers across most brands concerned about their place in the changing world and whether profits will be squeezed. The online aspect of the Sony Honda plan, as well as the lack of details around how the vehicle will be sold and serviced, has raised questions with the Honda and Acura brand dealers. Many nonetheless expect Honda to work through the existing retail network. "These issues are certainly a concern," said Brian Benstock, general manager and vice president of Paragon Honda and Paragon Acura in Queens, New York. "The best path forward is with the dealers." "We have a role (automakers) can't replicate," said Benstock, who also is on the Acura national dealer advisory board and has spoken with Honda officials about the new vehicle. "There's no way that Honda wants to hurt their existing dealer body." Some dealers questioned why Honda would even consider trying to work outside the current U.S. sales network given its national reach. Honda has about 1,100 Honda dealers and 270 Acura dealers. A Honda spokesperson referred questions about the joint venture to the new company. Sony Honda spokesperson Mai Nagadome said there are still a lot of details to finalize, but selling through the dealers has not been ruled out and customers would feel uneasy without some kind of after-sales service process. "The cost of continuing to develop (internal combustion engine) products along with EVs and autonomous tech and software for the next generation vehicles is proving to be quite the challenge," said Peter Hennessy, dealer principal of Atlanta-based Hennessy Automobile Companies, which includes a Honda store. "I get teaming up with Sony, but it should be done in conjunction with the dealer network, not outside it," he added.

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:

Acura NSX production delayed

Listeners of the Autoblog Podcast will be familiar with my opinions on the Acura NSX. While I love the idea of Acura building a halo car again, I've routinely joked on-air that the car will never, ever reach production and will continue being teased and previewed ad nauseam. So I'm chuckling at this news: the NSX is being delayed again. To be fair, while it sounds like a big deal – pushing the NSX back from model year 2016 to 2017 – this is a fairly minor delay in the grand scheme. Instead of starting production this fall, as previously announced, the new supercar will start rolling down the line at Honda's Marysville, OH factory in the spring. "Trial production" has already started, Honda says, while briefly acknowledging the delay in the attached press release. While Honda offered no reason for the delay in volume production, Automobile claims it's the fault of the move to fit two turbochargers to the V6, which was made midway through development. Fitting the two iron lungs meant rearranging the six-pot into a longitudinal layout. Here's hoping there are no further delays. Scroll on for a look at Honda's press release, which does its best to gloss over the NSX delay while talking about the company's new Performance Manufacturing Center in Marysville. Related Video: Performance Manufacturing Center: Precision Craftsmanship Aug 14, 2015 - CARMEL-BY-THE-SEA, Calif. The next-generation Acura NSX is produced at the new, dedicated Performance Manufacturing Center (PMC) in Marysville, Ohio, using domestic and globally sourced parts. With trial production already underway and production start-up scheduled for spring 2016, this world-class manufacturing facility employs groundbreaking techniques in weld, body construction, body painting, final assembly and quality confirmation to ensure the highest levels of precision and craftsmanship. More details on the unique and innovative manufacturing processes at the PMC will be rolled out over the months leading up to the start of production, but the following highlights of the new facility were shared during the 2015 Monterey Automotive Week: Innovative blend of people and technology: throughout the PMC, NSX production is centered around the skills of approximately 100 experienced engineers and technicians building the NSX to precise levels of quality and craftsmanship.