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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:

Honda shows us 'The Challenging Spirit of Honda'... in Japanese

Just as Porsche has done with its lengthy Le Mans gear-up, Honda is is laying the table for its Formula One return more than a year before we'll actually see it on track. We've heard what it's 2015 engine will sound like, reminisced with the 1988 McLaren Honda MP4/4 and the 1964 Honda RA271 and spoken to the company's CEO about what F1 involvement could do for its production car engines.
The automaker has now released a video called The Challenging Spirit of Honda that traces the development of its in-house F1 program and the jump from motorcycles to the first RA270 F1 chassis in 1962, to the RA272 chassis that won the 1965 Grand Prix. The only catch: the video is in Japanese. However, you can read about the winning car in English, and the video ends with another sound check of the 2015 power unit. That is a universal language, and you'll find it being spoken below.

Honda recalls 25k Fits over grab handle, airbag issue

Honda has issued another recall for the Fit. Only this time, it comes down to a very specific issue arising in a limited cross-section of production. The recall affects over 25,000 units in the United States alone. This problem results from the bracket affixing the rear grab handle, which was apparently manufactured incorrectly. As a result, the bracket may puncture the side curtain airbag as it deploys. That's bad news, so Honda is recalling the affected vehicles to have that bracket replaced. According to the manufacturer, the issue was discovered during its own internal testing procedures, and not because of any reported incidents. The problem only affects Fit hatchbacks from the 2015 and 2016 model years, manufactured between April 11, 2014, and July 2, 2015. Even within those confines, however, the recall is limited only to those in LX trim level and not equipped with a sunroof. That amounts to an estimated 25,367 units in the US - less than a third of the 84,000+ units American Honda sold in the same fifteen-month period. This is the third recall that has affected the Fit in as many months. Last month saw 143,000 units of the Fit and Civic recalled over a transmission issue. In September, the Japanese automaker called in another 18k Fits over a problem with their ignition coils. RECALL Subject : Improper Rear Grab Rail Bracket/FMVSS 214/226 Report Receipt Date: OCT 23, 2015 NHTSA Campaign Number: 15V697000 Component(s): AIR BAGS , STRUCTURE Potential Number of Units Affected: 25,367 Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2015-2016 Fit LX-trim vehicles manufactured April 11, 2014, to July 02, 2015 and not equipped with a sunroof. In the affected vehicles, the rear grab handle brackets were not manufactured properly, and as a result, the brackets may puncture the side curtain air bags upon their deployment. As such, these vehicles fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) number 214, "Side Impact Protection" and number 226, "Ejection Mitigation". CONSEQUENCE: If the side curtain air bags are punctured upon deployment, the outboard seat occupants may be at a higher risk of injury during a crash. REMEDY: Honda will notify owners, and dealers will replace the rear grab handle bracket, free of charge. The recall is expected to begin December 4, 2015. Owners may contact Honda customer service at 1-888-234-2138. Honda's number for this recall is JV8.