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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:

Junkyard Gem: 1986 Mazda 323 DX Hatchback

Mazda built generation after generation of the Familia, starting with the Giugiaro-styled machines of the 1960s. The first Familia that sold well in North America was called the GLC (for "Great Little Car"), and it began life as a rear-wheel-drive cousin to the RX-7 before the Familia went to a front-wheel-drive platform for the 1981 model year. The GLC name stuck around these parts through 1985 — and I've documented a few discarded examples of these now-rare machines during my junkyard travels — before getting the 323 name starting in the 1986 model year. It's no sweat to find 1990s 323s in junkyards, but I've been scouring the car graveyards of the land for the elusive early 323 and, finally, found this moss-encrusted '86 in a San Francisco Bay Area yard. BMW popularized the lower-case-i nomenclature for fuel-injected cars with the first 3-Series back in the 1977 model year, and Mazda wasted no time making "1.6i" badges to tout the futuristic technology under the hood of their low-priced econo-commuter a decade later. At a time when most Civics had carburetors (and the notorious "Map of the Universe" diagram to untangle the underhood vacuum lines), the electronically fuel-injected engine in this car was a major selling point indeed. It wouldn't be many more years before the wretched Subaru Justy was the final carbureted Japanese car available in America, but this 1.6-liter B6 four-cylinder (which evolved into the engine that, flipped 90 degrees, powered the early Miatas) was high-tech stuff for a cheap car in 1986. Just 84 horsepower, but they were clean and reliable horses. In the middle 1980s, the common perception in North America was that you had to buy a Honda or Toyota if you wanted an affordable car that could make it to 200,000 miles. This 323 held together just as well as most Tercels or Civics from 1986. Of course, I've seen a junkyard RX-7 with 393,854 miles, so you just never know. When you see lots of moss and lichens on a car in a Northern California junkyard, you know it spent years — maybe decades — languishing in a shady outdoor spot. Perhaps this car racked up 20,000 miles per year slogging through a harrowing Lodi-to-Sausalito commute, then got parked and forgotten in 1996. We'll never know. With the optional automatic transmission — nearly every early 323 I've seen had the 5-speed manual — this car wouldn't have been much fun to drive. Point A to Point B would have been fine, though.

Mazda3 celebrates 10 happy years

Mazda is on the cusp of unveiling an all-new Mazda3, but the compact will mark an important milestone before that happens. The very first Mazda3 rolled off of the assembly line on June 25, 2003. A decade later, the little car has snagged some 136 awards. The first generation sold 2.2 million units over the span of six years, and the second has smiled its way into the hearts of 1.4 million buyers since 2009. Mazda notes the machine even took the honor of being the top-selling passenger car in Australia in 2011 and 2012.
So, what will the future bring? The Japanese automaker is keeping the details to itself for the moment. From the spy photos we've seen, it looks as if the new design will fall under the company's new Kodo design philosophy. That same language brought us the perilously sexy Mazda6, and the new Mazda3 should be no less attractive. You can check out those photos here.
You can also read the full press release on the compact's 10-year anniversary below.