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2016 Mazda2 won't come to the US

Hoping to get your hands on the new Mazda2? Don't get your hopes up too high, because the latest word has it that the new hatchback won't be available in the United States. According to the report from Automotive News, Mazda's US office has decided against bringing the new Mazda2 to American showrooms. This despite it being made just south of the border in Salamanca, Mexico. The reasons are apparently two-fold. For starters, Mazda sales offices around the world have been clamoring for larger allotments of the new 2, and the company can only supply so many. "We could have had it, but we would have had a number that didn't make much sense with 600 dealers and with the marketing it takes to launch a new car," Robert Davis, Mazda's senior VP of US sales operations, told AN. For another, Mazda is apparently not convinced the new supermini would resonate with US buyers, who are increasingly migrating towards crossovers. So Mazda is focusing instead on "products that make us and our dealers considerably more profit than a Mazda2 does." That doesn't mean the latest Mazda2 will be entirely out of our reach forever, though. The company's agreement with Toyota will see a sedan version sold in the US as the Scion iA. Mazda is also certifying it to US safety and environmental standards so that it can sell the 2 in Puerto Rico, which means that it wouldn't take much to change course and bring the hatchback into the US in the future: "It'll always be there if we need it," Davis told AN. Reached for comment, a spokesman for Mazda's North American operations told Autoblog that "The Mazda2 launch in the U.S. market is on hold in order to evaluate the B-Car segment and enable us the opportunity to focus on the launches of the refreshed Mazda6 and CX-5, and the all-new MX-5 roadster and CX-3 subcompact crossover SUV." That leaves the aforementioned CX-3 - which is, incidentally, based on the same architecture as the Mazda2 - as the smallest mainstream model that Mazda will offer Stateside.

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:

Toyota and Mazda in talks to build joint US auto plant

UPDATE: The Toyota-Mazda deal has been announced. A newer version of this story appears here. Toyota Motor Corp and rival Mazda Motor Corp are expected to announce plans on Friday to launch a joint venture and build a new U.S. assembly plant, a person briefed on the matter said. A new auto plant would be a major boost to U.S. President Donald Trump, who campaigned on promises to boost manufacturing and expand employment for American autoworkers. Japan's Nikkei reported on Thursday that Toyota would take a roughly five-percent stake in Mazda Motor Corp to develop key electric vehicle technologies and jointly build a factory in the United States. The deal could be announced as soon as Friday, the newspaper said. The person briefed on the matter, who was not authorized to speak to the media and requested anonymity, confirmed the Japanese carmakers were planning to build a large plant in a yet to be determined U.S. location and planned future joint efforts on electric vehicles. The same source declined to offer further details, however. Toyota, in a statement, said the two companies have been exploring various areas of collaboration under a May 2015 agreement. "We intend to submit a proposal to our board of directors today regarding the partnership with Mazda, however, we would like to refrain from providing further comment at this time," Toyota said in a statement issued by its U.S. operations. Mazda said in statement that "nothing has been decided yet" and added the company "will have a board meeting on this matter today. We cannot comment any further." Toyota, the world's second-largest automaker by vehicle sales in 2016 and Japan's dominant car company, has been forging alliances with smaller Japanese rivals for several years, effectively consolidating the Japanese auto sector. A new U.S. assembly plant would likely become the prize in a fierce competition among Midwestern and Southern states eager to expand manufacturing jobs. Trump in January criticized Toyota for importing cars to the United States from Mexico. The Republican president also threatened to impose a hefty fee on Toyota if it were to build its Corolla cars for the U.S. market at a plant in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. But since January, Trump has praised Toyota for its U.S. investments.