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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:

Everything new at the 2019 New York International Auto Show

Transcript: Welcome to the 2019 New York Auto Show. It's the last auto show, and so far it's my favorite of the year. We have a new buggy, compact pickup and trail ready SUV from Volkswagen. Ford brought the new Escape and a new Mustang performance variant, and we have a brand new Toyota Highlander and Subaru Outback. Let's go take a look around. We're here at the New York Auto Show with the Subaru stand. Normally the Subaru stand is just some white carpet and some show lighting. This year it's like we're in a national park. It's ... Frankly, I'm from Oregon. You're from Colorado. Yeah. It's making us feel at home. And in that way what better place and what better people to introduce this Subaru Outback which is pretty much the official car of Colorado and Oregon. Yeah. You actually have to buy a Subaru before they let you move to Colorado. Now instead of climbing up there and taking a look because we've been told we can't do that we're gonna go over there and check out another one. So the exterior, not that different. No. Looks exactly like an Outback. There's actually oddly a little more black plastic trim on the outside. A little too much for me. Right. It's interesting because it kind of slowly went away from that from the beginning because in the beginning the black plastic trim kind of made it an Outback, and now they're kind of bringing it back. I guess they needed to make it more macho. Right. Right. Now we're inside. Inside it looks pretty different. Swank. It's kind of swank for an Outback which has been pretty plain. Now this is the newly available vertically gigantic touch screen here. 11.6 inches. That is massive. This is how big it is when it's turned on ... just for the viewers. Now this is the onyx trim. So with that you get the black mirrors, the black wheels. This upholstery is special to the onyx, so it's gray and black and you also have this green stitching. Yeah, I like this accent stitching. It's kind of neat. Oh there's also a little tray there. Well this is a deep bin here. You can probably fit a phone. There we go. Almost. Yeah there are two USB ports. There's an additional two in the backseat. So this thing here you pop in the cup holder and it gives you a little more space or less space. These are really big, so if you have one of those Nalgene bottles I'm guessing it's going to fit in there. One of my complaints about my Subaru that I own now which is a naturally aspirated Crosstrek is that up in the mountains. It's slow?

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