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Beleaguered Takata unlikely to seek automaker assistance

Takata is continuing to deal with the massive airbag recall for millions of vehicles, but even if it doubles production, it could take years the company to build enough replacement parts to properly repair all of the affected models. If the supplier takes a hard enough financial hit whether through fines, lawsuits or just the cost of making the components, then the business might not be able to keep up production. Such a situation could put automakers in the very difficult predicament of deciding whether to provide Takata with financial assistance. Honda for one has little interest in lending further support to the beleaguered supplier, according to The Wall Street Journal. The Japanese automaker recently dropped its annual sales targets to put a larger emphasis on vehicle quality, partially in response to the inflator recall. It also struck a deal with another company for replacement parts and was rumored to abandon Takata for some future business. Honda CEO Takanobu Ito did leave the door barely cracked for possible aid. "Takata itself needs to figure out how to fulfill its duties, but if it makes any request to automakers, then we would think about that," he said, according to The Wall Street Journal. There isn't much likelihood of Takata needing a bailout, though. According to The Wall Street Journal, analysts aren't concerned about the company's short-term fortunes, and the supplier had about $728 million in cash as of last September. News Source: The Wall Street Journal - sub. req.Image Credit: Toru Yamanaka / AFP / Getty Images Earnings/Financials Recalls Honda Safety Takata airbag recall

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:

Why Acura should build a hybrid Integra successor using NSX tech

Yes, it sounds like a heresy. Yes, the Honda CR-Z was not a good hybrid sports car. Yes, we know the RSX officially replaced the Integra here (but was called the Integra in Japan). But, no, we're not crazy. Well, maybe a little bit. But hear us out. At the moment Acura is a bit of an unfocused mess. Its line-up is thoroughly uninspiring, save for its $200,000 NSX supercar – a great mid-engined supercar with an impressive, performance-oriented hybrid AWD system. And yet few people would draw a line connecting Acura's other SH-AWD hybrids, the RLX Sport Hybrid and MDX Sport Hybrid, to the NSX. The first NSX told the world that Acura built cars with world-class technology and performance, and the Integra carried it to people with normal pocketbooks. Since the new NSX communicates a similar message as its forbearer, so too would a new Integra. Now making an entry-level sports car with hybrid technology is tricky business. As we already established, the Honda CR-Z was a colossal flop. It's balance was all off: heavy, expensive, and not very sporty – and it didn't even get very good fuel economy. However, Honda and Acura can learn from these mistakes. First, to keep costs in check, Acura can borrow from Honda's ever-improving parts bin. It would logical to borrow the excellent Civic coupe platform – something the old Integra did as well. It could also attach the proposed hybrid powertrain to the upcoming Si turbocharged four-cylinder. Some added cost will be unavoidable, since the batteries and motors will have to go somewhere. That will cost some engineering dollars, and inflate the price tag a bit. However, since Acura is a premium brand, it has some wiggle room to bump up the price without losing buyers. Weight is another potential issue this hypothetical hybrid will face, and was one of the chief complaints with the CR-Z. Looking at the RLX and the RLX Sport Hybrid, the hybrid bits weigh about an extra 340 pounds. That's not insignificant, but added to the turbocharged Civic EX-T coupe's 2,900 pound curb weight, you would have a car that would weigh 3,240 pounds. That's comparable to the very fun Mustang EcoBoost. As long as Acura keeps the weight under 3,500 pounds, the brand should have an entertaining coupe on its hands. The final piece of the puzzle is to make sure it isn't compromised. Every bit of hybrid tech in the NSX is there for performance. It helps eliminate turbo lag, and it improves acceleration and handling.