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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:

2019 Mazda MX-5 Miata's more horsepower will cost less money

Mazda has already announced a power upgrade for the 2019 MX-5 Miata roadster after engineers tweaked the Skyactiv-G 2.0-liter inline-four for 17 percent more power and higher fuel efficiency than the outgoing 2018 model. Now we know the starting price for the soft-top version: $26,625, including destination charge, which is a $915 drop from the lowest-priced 2018 model. As is standard across the Miata lineup, output increases by 26 horsepower to 181 hp, with torque nudging up 3 pound-feet to 151 lb-ft at 4,000 rpm. Other new features also track with the changes previously announced for the 2019 Miata RF, including the telescoping steering wheel and standard rearview camera. But the soft-top version gets an available brown soft top for an extra $200 for the Grand Touring trim (a black soft top is standard), new package options at each trim level and optional traffic-sign recognition and smart city brake support, which offers automatic emergency braking at low speeds. Also new is that steering column, which is made of aluminum to save weight. Mazda will keep the six-speed manual as an option for all three trim levels, with an available six-speed automatic with paddle shifters and Sport driving mode. Standard features include LED head- and taillights, 16-inch wheels, Mazda Connect infotainment with a 7-inch touchscreen monitor, Bluetooth phone pairing and audio streaming, and keyless entry. Jump up to the Grand Touring trim starting at $31,675 and get 17-inch dark silver wheels, body-color interior trim, auto on/off headlights, auto-dimming driver's side mirror, rain-sensing windshield wipers, heated, leather-trimmed seats and a nine-speaker Bose Premium audio system, among other things. Mazda is also offering a $550 GT-S Package on the Grand Touring model with the six-speed manual, a front shock tower brace, limited-slip rear differential and Bilstein dampers. MX-5 Club models start at $30,485 and come standard with the GT-S Package goodies when equipped with the manual transmission. Automatic versions get standard heated cloth seats with contrasting red stitching, body-color interior trim, black 17-inch wheels, front air dam and rear lip spoilers.

New Mazda3 looks just like Mazda Kai concept in spy photos

Just a couple of weeks before the official reveal, one of our spy photographers caught the next-generation Mazda3 out testing in minimal camouflage. The car was a hatchback model, testing alongside a VW Golf and Audi A3, and was only wrapped in thin vinyl. As a result, we can clearly see that the new compact Mazda hatchback looks just like the stunning Kai concept from last year's Tokyo Motor Show. The car features effectively the same nose and profile of the concept. The main grille is larger than the current model, and it leans forward aggressively. The windshield is very low and sleek. The rear portion of the car is dominated by the very thick C-pillar that leans far forward, augmenting the car's athletic stance. The window sill at the rear kicks up sharply, and the rear window doesn't wrap around or bulge out, giving the car a very tight, taut shape. It's not just the outside of the 3 we get to see. We get a good look at the interior. It also looks very much like the Kai's interior, with the focus being the driver. The gauges are flanked by air vents that blend into the shape of the instrument binnacle. The rest of the dashboard is left as uncluttered as possible. The climate controls and vents all reside in the same long horizontal plane. The infotainment screen, which appears to be touch-sensitive based on one spy photo, is canted toward the driver. Mazda's rotary controller does return, as seen in the center console. Also in the center console is the manual shift knob, which we expect, or at least hope, will continue to be available in the U.S. We'll have answers to all our questions about the Mazda3 at the end of this month when it makes its debut at the L.A. Auto Show. We'll also see the sedan version of the car. The powertrain is the biggest mystery at the moment. Mazda showed the Kai with the Skyactiv-X engine, Mazda's spark-controlled compression-ignition gasoline engine. We've driven a development car with the engine, and Mazda seemed to intend the new Mazda3 to use it, but we're not sure if the engine will be ready for the car's launch. If not the Skyactiv-X engine, or perhaps in addition to, Mazda will probably use versions of its current engines. It could carry-over the naturally aspirated 2.0-liter and 2.5-liter four-cylinders currently used. The latter may use the cylinder deactivation now used on the Mazda6 and CX-5. We would love to see the company finally offer the turbocharged 2.5-liter engine from the Mazda6, CX-9, and now CX-5.