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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:

November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

Toyota and Lexus recall models for inadvertent airbag deployment

The Basics: Toyota will recall 320,000 examples in the US of the 2003-2006 Land Cruiser, 2004-2006 4Runner, 2005-2006 Tundra and Sequoia, 2003-2006 Lexus LX470, and 2004-2006 GX470. The Problem: The curtain shield airbags that come down from the roof can inadvertently deploy shortly after vehicle startup. This is due to improper programming of the airbag control module. Injuries/Deaths: "Toyota is not aware of any crashes caused by the condition. We have received reports alleging injuries such as abrasions and ringing in ears," company spokesperson Cindy Knight told Autoblog. The Fix: Toyota and Lexus dealers will replace the airbag control module with a new part, which will have improved programming. If You Own One: Toyota and Lexus will notify affected owners by mail early this month. Related Video: Toyota and Lexus Recall Certain Land Cruiser, 4Runner, Tundra, Sequoia, LX, and GX Vehicles February 02, 2016 TORRANCE, Calif., February 2, 2016 – Toyota Motor Sales, U.S.A., Inc. today announced that it is conducting a safety recall of approximately 320,000 Model Year 2003-2006 Land Cruiser; 2004-2006 4Runner; 2005-2006 Tundra and Sequoia; 2003-2006 LX 470; and 2004-2006 GX 470 vehicles. The involved vehicles are equipped with side Curtain-Shield-Airbags (CSAs) which deploy from the roof in the event of certain types of crashes. Due to improper programming in the airbag control modules, there is a possibility that, under certain specific and limited conditions shortly after startup, the CSAs and seat belt pretensioners could activate when not necessary. Unexpected activation of the CSAs could increase the risk of injury to the occupant. All known owners of the involved vehicles will be notified by first class mail. Toyota and Lexus dealers will replace the airbag control module with one which has an improved programming at no cost to owners. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-to-date Safety Recall information on Lexus, Toyota and Scion customers should check their vehicle's status by visiting http://www.toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin. For any additional questions, customer support is also available by calling Toyota Customer Service at 1-800-331-4331 or Lexus Customer Service at 1-800-255-3987.