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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:

Consumer Reports digs Mazda3, disses Jeep Cherokee

Consumer Reports has just rendered its verdict on two of the more important cars to launch this year - the Mazda3 and the Jeep Cherokee. Considering the value a "Recommended" rating carries with the public and the viciously competitive markets these two cars compete in, Consumer Reports' view could have some impact on their initial success.
For Mazda, that's a good thing. CR spoke quite highly of the Zoom-Zoom brand's compact sedan and hatch, testing both models, and citing the excellent fuel economy and snickety-snack manual shifter as high points. Downsides to the 3 included a ride that is agile but "nervous," a bit too much noise and a cramped back seat. Still, the 3 was good enough to earn its place in the ranks of the "Recommended."
The Jeep didn't fare quite so well, with CR calling the polarizing CUV "half-baked." Although both engines were tested, the magazine called the 2.4-liter four-pot underpowered and its nine-speed automatic unrefined and unresponsive. That's particularly damning, considering the 9AT's role in future Chrysler products, including the extremely important 200. Overall, the Cherokee missed out on the coveted "Recommended" rating.

2020 Mazda3 Hatchback Drivers' Notes | Luxury with a manual

The new Mazda3 wowed us when we got behind the wheel for the first time last year. Today, just one year further along, the 2020 Mazda 3 is still a delightful, premium offering in the compact segment. We happened to spend a week in the 2020 Mazda3 Premium Hatchback with a manual transmission, the most engaging and luxurious variant available. Mazda is sticking to its guns of only offering the manual transmission on the top-of-the-line Premium trim this year, and the only notable change is a $100 price increase. The manual also remains available only with front-wheel drive; all-wheel drive is optional but must be paired with the six-speed automatic. We’re expecting to see the magical Skyactiv-X engine show up on our shores eventually, but for now, the 2020 Mazda3 continues on with the 2.5-liter Skyactiv-G four-cylinder. It makes 186 horsepower and 186 pound-feet of torque. The manual transmission is a six-speed unit and contributes to a fuel economy rating of 29 mpg combined. Honda is challenging the Mazda3 manual in the new model year with its premium Civic Hatchback Sport Touring model that is newly available with three pedals. This Mazda3 is still rather expensive in this class, though, with our tester coming in at $30,665 after a few options were tacked on. That equipment is as follows: Soul Red paint ($595), navigation ($450), illuminated door sill plates ($425), auto-dimming mirror ($275), wireless charging pad ($275), rear bumper guard ($125) and a rear cargo mat ($100). Associate Editor Joel Stocksdale: I love this car so much. I love the design. I love the materials. But most of all, I love the way this car steers and handles. Every fraction of a degree of steering input yields exactly as much change to the eager nose. The steering wheel gives you a high-definition picture of what's happening between the tires and the pavement. The chassis feels neutral and has plenty of grip. Even its simple torsion-beam rear suspension stays planted over slightly bumpy corners. There's hardly any body roll. This car constantly begs you to take it corner carving, and even on short errands I found myself zipping up and down on-ramps and off-ramps that were out of my way, just because it was fun. With a turbo engine (hint-freaking-hint, Mazda), it could be a killer hot hatch. Assistant Editor Zac Palmer: This car might just be the perfect daily driver for someone with a reasonable budget and no large hauling needs.