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Renewed deal continues to give Honda power to Ariel models

You can expect to hear screaming Honda engines in Ariel's stripped down vehicles for even longer; the two companies have just reaffirmed their exclusive powerplant supply deal in the UK. Ariel's models have used Honda power for the last 16 years. Just in time for the updated agreement, the eight technicians at the sports car brand's tiny factory just completed their 1,500th model with the Japanese automaker's high-revving engine. The basic Atom in the UK comes with the naturally aspirated 2.0-liter K20Z engine, and Ariel fits the mill with an exhaust and custom ECU tuning to make 245 horsepower. An optional supercharger can push the output to 310 hp or up to 350 hp. The top versions can reach 60 miles per hour in less than 2.7 seconds and a top speed over 155 mph. Ariel's other products have different Honda powerplants. The company's new Nomad uses a 2.4-liter K24 with 235 hp, and an optional supercharger can give the off-roader 290 hp. For those that prefer two wheels, the Ace motorcycle packs a 1,237cc V4 with 173 hp. In the US, the Atom wasn't always available with Honda power. Brammo, which previously imported the sports cars here, fitted them with a 2.0-liter EcoTec four-cylinder engine from General Motors. Ariel toyed with other powerplants, too, like its 500-horsepower V8 in the Atom 500. HONDA (UK) AND ARIEL RENEW EXCLUSIVE ENGINE SUPPLY DEAL AS 1,500TH HONDA-POWERED ARIEL ROARS OUT OF THE FACTORY Honda (UK) and Ariel renew exclusive engine supply deal as 1,500th Honda-powered Ariel roars out of the (very small) factory Honda (UK) and Ariel Motor Company renew exclusive engine supply deal for Atom and Nomad 1,500th Honda-powered Ariel in 16 years roars out of the factory Supercharged Civic Type R engine delivers a scorching 350bhp and top speed of more than 155mph in the famed Ariel Atom Honda (UK) and Ariel Motor Company have renewed their 16-year strong exclusive engine supply agreement which sees the famed Atom powered by the Civic Type R engine, and the new off-road Nomad by the Civic 2.4 unit. The news comes as the two brands celebrate the 1500th Honda-powered Ariel roaring out of the small factory in Somerset, where just eight highly skilled build technicians spend 100-200 hours painstakingly hand-crafting one vehicle each at a time, from start to finish. Over the last 16 years 1,500 new Ariels have been built here – just a few day's work for Honda's Civic-producing Swindon plant.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

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: