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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 Civic overtakes Toyota Corolla as America's best-selling compact

The battle to claim October's best-selling compact sedan title has been won by the Honda Civic. The Japanese four-door sold 27,328 units, leaving the Toyota Corolla - September's title holder - in its wake with 23,637 units sold. In terms of year-to-date sales, the Civic sits at 280,899 units, with the Corolla trailing at 257,184 vehicles.
Sitting in third place, separated by a significant gap from the leaders, is the Chevrolet Cruze with 16,087 units sold. The Ford Focus earned fourth, with 15,108 units moved out of showrooms. (It is interesting to note that while the Civic and Corolla have both enjoyed double-digit sales increases year-over-year, the Cruze and Focus have seen significant decreases during the same period.)
Sales of the Hyundai Elantra hit 14,876 units, putting it in fifth place, with the Volkswagen Jetta earning sixth place with 11,710 units. Rounding out the ten top sellers were the Nissan Sentra (8,399 units), Mazda3 (7,647 units), Dodge Dart (5,617 units) and Subaru Impreza/WRX (4,923 units). The Kia Forte (4,706 units) and Volkswagen Golf (2,249 units), eleventh and twelfth respectively, have fallen behind.

2015 Pikes Peak Hill Climb: Practice Day 1

Based on what we learned from the first day of practice for the 2015 Pikes Peak International Hill Climb, the quickest race pace up the paved road to more than 14,000 feet above sea level may not be from internal combustion locomotion anymore. "If it all goes well, and the planets align, [under nine minutes] shouldn't be out of the question," said Paul Wilding, team manager for Nobuhiro "Monster" Tajima's Rimac Automobili Monster Sport E-Runner entry. Wilding added that if Tajima's car held up during the week it could finish first overall, which would be the first time an EV takes the overall crown at the hill climb. Last year, the gap between overall winner Romain Dumas' Norma M20 RD Limited and the fastest EV was just over two seconds. In the 2014 race, Tajima finished third in his class. "We think this car is the fastest way up now," said Wilding. "There's no affect from the altitude – this car is a monster, our driver is a monster." The practice, which isn't mandatory but is sanctioned by race officials, concluded Tuesday morning with a few surprises ahead of Sunday's race. Tajima will be racing for the fourth consecutive year in the all-electric modified division. Wilding said today's conditions weren't ideal and the race Sunday could be more challenging than initially expected. "It was a lot bumpier than we expected today," he said. "But today means nothing. It was all [reconnaissance]. Tomorrow means everything." The Honda ARX-04B LMP2 prototype brought to Pikes Peak had a difficult start to the week. Honda Racing spokesman Eric Mauck said the car struggled and didn't run in practice Tuesday. "We're looking for data and research more than anything else," Mauck said. "We're not going for Sebestain's record this year, we're just looking to gather information for years to come." Colorado-native, Honda driver, and Formula E racer Justin Wilson will pilot the LMP2 up the mountain Wednesday – assuming the car is ready. "He's obviously a guy that Honda thinks very highly of. Anytime we have an opportunity to put Justin behind the wheel of anything we want to," Mauck said. Honda driver Tetsuya Yamano, who is driving an all-electric Honda CR-Z in the exhibition class, echoed Mauck's assessment. "We're not making a racecar," Yamano said through an interpreter. "This is part of [research and development] and we're looking to get as much data back to engineers in Japan as possible ...