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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:

China's largest dealer body pushes back against foreign automakers over huge inventories

Do not think for a second that automakers forcing inventory on dealers in order to pad the numbers is a ruse known only in the US. Stories of individual brands have hinted at the trouble Chinese dealerships are having trying to move units as the country's economic growth remains hot but comes off the boil, like the one revealing that 95 percent of Toyota-FAW showrooms are losing money. Yet Toyota isn't the only culprit, and the issue has become so dire that the China Automobile Dealers Association (CADA), the largest dealer body in the country, has written to the government to complain. Chinese car sales are expected to close out the year with an annualized growth of six-percent, down from last year's 14 percent when targets were set, while in the background the pace of overall economic expansion is the slowest its been since the early nineties. Automakers, shipping cars on schedule to make their earlier targets, have blown up inventories such that they are an average of 1.8 times monthly sales, when the preferred multiplier is from 0.9 to 1.2. According to the CADA, the price wars and necessary incentives mean that only 30 percent of dealers are operating in the black. That number is down a whopping forty percent since 2010. In response, Toyota has already said it will not make its 2014 target of 1.1 million cars sold. We're a long way from 2012, when Toyota planned on selling 1.8 million cars in China in 2015, a target that's now as realistic as a manticore. BMW, Honda and Nissan have erased numbers on their spreadsheets, too; BMW growth dropped from 20 percent to 8 percent midyear after it began "reducing wholesale supplies," and Honda has been reworking its plans as sales have decreased each of the past six months. It's a big deal for Chinese dealers to begin protesting publicly, the CADA saying, "In the past, dealers were angry, but dared not speak out. But now, they have to shout because the situation is getting so unbearable." With six-percent growth forecast for next year and dealers unwilling to remain underwater, The Year of the Sheep coming in 2015 could portend meaning beyond the zodiac. News Source: ReutersImage Credit: AP Photo/Andy Wong BMW Honda Nissan Toyota Car Buying Car Dealers

Honda recalls 2016 Pilot for warning light issue, 35k affected

Honda is recalling 35,406 examples of the 2016 Pilot in the US because the vehicles' warning lamps might not activate immediately. Specifically, the campaign covers two-whee-drive models with build dates between May 4, 2015, and September 8, 2015, and four-wheel drive versions from between May 7, 2015, and September 4, 2015. Due to this issue, if there's a malfunction in aids like the tire pressure monitoring system, anti-lock brakes, or electronic stability control, the corresponding warning light might not immediately illuminate on the instrument panel. When the ignition is turned off and then back on, the alerts do appear. Still, the fault puts the Pilot out of compliance with federal rules. Beginning November 27, the fix will simply be updated instrument cluster software for the affected Pilots. According to documents submitted to the National Highway Traffic Safety Administration (PDF): "As of October 8, 2015, Honda has not received any warranty claims, field reports, injuries or crashes related to this issue." Related Video: RECALL Subject : Improper Software to Module FMVSS 126,135,138 Report Receipt Date: OCT 16, 2015 NHTSA Campaign Number: 15V668000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 35,406 All Products Associated with this Recall Vehicle Make Model Model Year(s) HONDA PILOT 2016 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2016 Honda Pilot 2WD vehicles manufactured May 4, 2015, to September 8, 2015 and 2016 Pilot 4WD vehicles manufactured May 7, 2015 to September 4, 2015. In the affected vehicles, when one of the safety systems such as tire pressure monitoring, anti-lock braking or electronic stability control malfunctions, there is potential that the instrument panel will not illuminate the corresponding warning light, however the warning lamps will illuminate when the ignition is turned off and then turned back on. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic stability control systems", number 135, "Light vehicle brake systems" and number 138, "Tire pressure monitoring systems". CONSEQUENCE: If a safety system cannot immediately warn the driver when needed, the driver may be at at increased risk of a crash. REMEDY: Honda will notify owners, and dealers will update the instrument cluster software, free of charge.