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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:

This month's deals on wheels: 3 cars with incentives, rebates

On television, they come at you rapid-fire: truck deals, car deals, SUV deals. You don't have time to read the fine print, and many sound too good to be true. What follows are three deals that are both good and true. And check out our entire list of incentives and rebates. VOLKSWAGEN JETTA: With Dieselgate winding down and VW's all-new three-row SUV – the Atlas – winding up, Volkswagen is selling sedans with incentives. The Jetta remains VW's bestseller in the US. If you're looking for an immodest deal on modest transportation, you can do worse than a lease on the 2017 Jetta S. THE DETAILS: Purchase at 0.9% APR (no down payment required, available on new 2017 Jetta models financed by Volkswagen Credit, participating dealers only). At that rate, you could save $1,600 over the life of a loan. Offer ends May 1, but given the tepid market interest in sedans, incentives will probably continue through the balance of the model year. NISSAN TITAN CREW CAB: While some buyers will wait for Nissan's recently announced Titan King Cab, and commercial users will grab the regular cab and 8-foot bed, we'll recommend a lightly optioned 4X4 crew cab with standard V8 power, California-penned sheetmetal and a made-in-America footprint. Nissan's full-size pickup is finally a credible competitor in the pickup segment. THE DETAILS: With $3,500 cash back, on top of whatever deal you negotiate, Nissan is effectively reducing the window sticker of a Titan S crew cab by almost 10 percent. MITSUBISHI OUTLANDER: Some cars show up on buyers' radar, some don't. Some aren't anywhere near the radar room. Mitsubishi's Outlander is one of those. But that doesn't diminish its basic attractiveness, especially for young families looking for an affordable three-row SUV with responsive power and competitive features. Add one of the industry's longest warranties and a compelling deal, and you suddenly have reason to track down a Mitsubishi dealer. THE DETAILS: It couldn't be simpler – negotiate your best deal on a 2017 Mitsubishi Outlander, and then receive a $2,000 rebate; on a remaining 2016, it's $3,000. We'd select a fully-equipped GT 3.0S – AWC, which hooks Mitsubishi's V6 to a conventional automatic (vs. a CVT on lower-priced models) and all-wheel drive. That's a window sticker of about $34,000, and you can count on an aggressive posture by the dealer to get your business. Mitsubishi Nissan Volkswagen Car Buying Buying Guide Truck SUV Sedan

Mexican police seize engine-powered drug cannon

It seems like we're always hearing about new ways in which people are trying to smuggle things into the US from Mexico - including simply driving over the wall. Case in point? Mexican police have found yet another way criminals are attempting to get drugs over the border. Mexicali police have seized what looks to be either a Mitsubishi Mighty Max or Dodge Ram 50 pickup, equipped with what is essentially an oversized spud gun in the bed used to shoot marijuana over the border.
Constructed from a metal tank and a large plastic pipe, The Guardian reports that this drug cannon actually uses a car engine to build up enough air pressure to launch up to 13 kilos of marijuana at a time. Mexicali police were alerted to this truck when their US counterparts found drug packages on this side of the border. As of yet, there is no word as to how the vehicle was caught and whether any arrests resulted.