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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 Hatchback Luggage Test: How it compares with sedan and Integra

Well, we have a first here at Autoblog Luggage Test HQ: the first time I've done the next-generation of a make/model that's already been luggage tested. I know, right, very exciting. So, for the first time, I'll be able to report how a vehicle compares with its immediate predecessor. As this is the Honda Civic hatchback, I can also show you how it compares with the Honda Civic sedan and the mechanically related Acura Integra. So. Many. Comparisons! In short, the Civic is a definitive example of why you can't really compare the cargo volume figures of a sedan and a hatchback (or wagon, SUV or other hatchbacked vehicle). The specs say the hatchback has 24.8 cubic-feet of space whereas the Civic sedan has 14.8, yet as I'm about to show you, the sedan actually has more space for holding bags or whatever. This is already a phenomena I covered with the Integra and its 24.3-cubic-foot trunk. Apparently, that half a cube makes a difference as it was indeed easier to load bags into the Civic hatch.  Top Civic hatchback, bottom left Civic sedan, bottom right Integra Some key observations here with this trio. The Civic sedan is 4 inches longer than the Civic hatchback, almost all of which is behind the rear axle. This lends its trunk greater length than the hatchback, which is more useful for stuffing in luggage. The Civic hatchback (and Integra) have more height, which balloons the cubic-foot number, but doesn't really provide much help in this test since I don't pack to the roof for safety, visibility and consistency reasons. If you lower the back seats, it's a whole different ballgame, but I'll get to that later. Now, to the bags. As in every luggage test I do, I use two midsize roller suitcases that would need to be checked in at the airport (26 inches long, 16 wide, 11 deep), two roll-aboard suitcases that just barely fit in the overhead (24L x 15W x 10D), and one smaller roll-aboard that fits easily (23L x 15W x 10D). I also include my wife's fancy overnight bag just to spruce things up a bit (21L x 12W x 12D). You can really see the difference in trunk length here. In the sedan (above right), you can fit the small roller bag behind the four biggest bags lined up. Definitely can't do that in the hatchback above left. In short, all the bags fit in all the cars (with some asterisks). It was a much easier fit in the sedan, though, and you can see that there's some extra space on either side of the egg-crusher hinges.

Honda execs take 'quality-related' pay cut after Fit Hybrid's 5th recall

Generally, the best policy in life is to admit when you're wrong and just accept the consequences. However, that attitude generally seems to be a bit less common in the world of business - at least without some government or legal prodding. So, it's especially surprising to learn that top Honda executives in Japan are taking a pay cut for the next three months following the fifth recall of the Fit Hybrid (pictured above) in the last 12 months.
According to Reuters, Chief Executive Takanobu Ito is taking a 20-percent pay cut to make amends for the quality issues. Also, 12 other high-ranking executives are taking 10 percent drops in their salaries. In addition to those temporary changes, Honda is creating a new position in charge of monitoring vehicle quality.
The latest recall fixes "noise-related defects," according to Reuters, on both the hybrid and naturally aspirated versions of the Fit, both variants of the Vezel (the sibling to the future HR-V in the US) and the N-WGN. There have also been three recalls for problems with the hybrid's seven-speed dual-clutch transmission. None of them have caused reported injuries or deaths, and these issues haven't affected US models.