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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:

Automotive Grade Linux will be the backbone of your connected car

Creating a backend for a secure, reliable, and expandable infotainment system is costly and time consuming. The Linux Foundation, a non-profit organization, has set out to promote and advance the Linux operating system in commercial products. Automotive Grade Linux, or AGL, is a group within the Foundation that seeks to apply a Linux backend to a number of automotive applications in a variety of vehicles from various suppliers and manufacturers. AGL's goal is to create a common, unifying framework that allows developers and manufacturers to easily implement applications across platforms. Currently, the focus is on infotainment systems, but AGL has plans for instrument clusters, heads-up displays, and eventually active safety software. At CES, a display from Panasonic showed a completely digital and customizable dashboard that allows information and apps to be moved from the gauge cluster to the infotainment screen and back, all through the use of gesture and touch controls. Although the organization has been around for five years, it's really only been in the past three that the group has been working hand in hand with automakers and suppliers. The first two OEMs to participate, Toyota and Jaguar Land Rover, have since been joined by Mazda, Suzuki, Ford, and, as of this week, Daimler. The latter is important as until now most of AGL's partner's have been based in Japan or the US. Other partners include suppliers Denso, Renesas, Continental, Qualcomm, and Intel. AGL want's to supply roughly 80 percent of the backend, allowing partners to then finish and refine the Linux system for each individual application. Think of how the Android operating system is refined and customized for individual smartphones from Samsung, LG, and Motorola. While the final product looks different, developers can have an application that will work across all AGL systems. Because it is open source, anyone can use and develop for AGL. You can even go onto the group's website and download a copy right now. There is also a software development kit available that helps facilitate app creation on the platform. Vehicle development cycles take roughly five years, so there currently are no cars that run an AGL backbone available for consumers. AGL Executive Director Dan Cauchy says products should be hitting the market later this year, with even more coming in 2018. Right now, the industry is relatively fragmented when it comes to infotainment and related systems.

Toyota's 'Fueled by Oil Creek' gases up hydrogen's history

Hey, Toyota. We got a question for you. If you're using a small Pennsylvania town to highlight the technological and ecological advances of the Toyota Mirai hydrogen fuel-cell electric vehicle, why are those vehicles going to be sold only in California this fall? The Japanese automaker has released an online documentary video (the second in a series) showing what advantages hydrogen fuel-cell vehicles have over gas-powered vehicles, and uses Titusville, PA, as a backdrop. Some students from that town, which was an oil boomtown in the 19th century, take water from that town's Oil Creek (ah, symbolic), uses electrolysis to split that water into hydrogen and oxygen gases, then shows how the resulting hydrogen can power a Toyota Mirai for as far as 300 miles. Fueled by Oil Creek runs about five minutes. Toyota debuted sales of the Mirai last year in Japan and will start selling the car in California in October. The model will be priced at $57,500 and will be offered with a three-year lease option of $499 a month (with $3,649 due at signing). Toyota also said earlier this year that it would spend about $170 million upping production capacity for the Mirai. Take a look at Toyota's press below and watch the video above. Petroleum Past Helps Fuel Hydrogen Future Water from Pennsylvania's Oil Creek Becomes Hydrogen Fuel for Mirai Second Video in Toyota's "Fueled by Everything" Series June 03, 2015 TORRANCE, Calif. (June 3, 2015) – A creek, a little high school chemistry, and a former oil boom town open to a hydrogen-fueled future. This is the story of "Fueled by Oil Creek," the second online video in Toyota's multi-part "Fueled by Everything" series aimed at highlighting renewable sources of hydrogen fuel, leading up to launch of the 2016 Toyota Mirai. Directed by Oscar-winning documentary filmmakers T.J. Martin and Dan Lindsay, the 5-minute video takes viewers to Titusville, Pennsylvania where, in 1859, an oil well changed the American energy landscape. Flash forward to 2015. Local high school students in the film collect water from the aptly named Oil Creek for a lesson in electrolysis, separating water into oxygen and hydrogen gas using an electric current. The resulting hydrogen gas powers the hydrogen fuel cell electric Toyota Mirai to travel up to 300 miles on a full tank. The only tailpipe emission is water, just like the fuel source.