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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:

Volkswagen drops "GTi" lawsuit against Suzuki

Way back in 2004, Volkswagen took umbrage with Suzuki being granted permission to use the nameplate "SWIFT GTi" for a performance variant of its small-car offering (2012 equivalent seen here). Now, eight years and surely some very steep legal bills later, VW has finally dropped its claim against Suzuki.
The General Court of the European Union stated, back in March of this year, that Suzuki's GTi registration could not be confused with VW's "Golf GTI." Volkswagen had appealed that ruling, though has now reportedly called off the dogs. In fact, Germany's Die Welt reports that the appeal has been dead for several weeks now.
This news comes amongst continued arbitration acrimony between the two automakers, all revolving around VW's forced divestiture of nearly 20-percent stake it purchased in Suzuki some two years ago.

Suzuki calls in 26,000 Daewoo-built Veronas for overheating lights

Suzuki is recalling yet another Daewoo-built model due to possible problems with the daytime running light module in the instrument panel. This time it covers about 25,899 units of the Suzuki Verona from the 2004 through 2006 model years that need fixing. Like the repair campaign of the Forenza and Reno in May, it's possible for the part to overheat, melt and potentially cause a fire.
According to the Chronology of Principal Events section in the defect notice submitted to the National Highway Traffic Safety Administration, this recall was actually a direct result of the Forenza/Reno campaign. After finding the problem in those vehicles, General Motors Korea started investigating for more affected models and discovered that the Verona was also at risk. However, the report says that no cases of melting or fires have been found in the Verona.
Obviously, Suzuki will be notifying affected owners and will replace the DRL module free of charge. Scroll down to read the recall request or check out the full defect notice in PDF format, here.