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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:

Miata buyers prefer a manual gearbox, says Mazda

Earlier, we wrote about Toyota's underwhelming 2018 manual transmission sales figures. To recap – as Toyota's representatives told CarBuzz – the automatic Corolla outsold its manual equivalent to a ratio of 100 to 1, and just one in three Toyota 86 buyers picked a manual version of the rear-drive coupe. What about the other famous rear-wheel-drive offering from Japan, Mazda's MX-5 Miata? A case can be made that an 86 buyer cross-shops the Miata, and vice-versa, but what kind of split do Mazda's sales figures reflect in comparison? We reached out to Mazda for some sales data, and PR program manager Tim Olson told us 76 percent of Miata soft-top buyers go for the classic stick-shift option, leaving just 24 percent of buyers preferring the automatic. Both transmission options for the Miata are six-speed. The figures are based on year-to-date sales data for the 181-hp 2019 Miata, from July 2018 through April 2019. Interestingly, the more coupe or targa-like, retractable hardtop RF variant takes a step towards the 86 when it comes to transmission choices. While RF buyers still preferred the manual, the split was far closer to half and half: 52% went for the manual, and 48% chose the automatic. Perhaps this reflects the RF's more grand tourer-like image, and it might also be indicative of the RF's higher pricing. If you're going to spend nearly $34,000 for a Miata, another $600 for an autobox doesn't necessarily mean that much – choosing the auto on the base, Sport trim level soft top roadster is a $1,350 bump instead. While the $26,650 base Sport isn't exactly spartan, on a roadster it's fine to have less cushiness. With the higher-specced Club trim level, the auto's price tag shrinks to the aforementioned $600, as it is on the RF Club. There's no base Sport for the RF, as the cheapest RF is the $33,865 Club. But still, the manual shifter's snick-snack feel is one of the Miata's classic traits that has been with it since its inception 30 years ago. Sources say fewer than 5% of the original first generation Miatas were made with an automatic gearbox, but it's obvious trends and tastes are changing – although to be fair, automatics are getting much better as well.

Mazda development chief discusses future rotary platform

The switch can again be flicked from "The Rotary Engine is Doomed" to "The Rotary Engine Lives!" Mazda is re-tooling the once nearly forgotten rotary to work as a range extender for hybrid vehicles, with a chance for it to do even more than that. The latest information sounds rather promising for those still holding out a candle for the rotary. Mazda's powertrain development chief, Ichiro Hirose discussed future rotary plans with the Australian Drive at the CX-30 crossover's launch. Hirose told Australia's Drive that Mazda is currently working with a very flexible and efficient rotary hybrid platform that doesn't necessarily come with the heavy emissions and fuel consumption baggage the rotary engine has earlier been saddled with. Hirose calls the rotary-based solution "XEV," referring to its adaptability. "It has the generator function and also it can be used to provide the drive force to give you traction. [...] Because the rotary engine is compact in terms of its packaging size [and] if we should choose to do so we can have the generator, rotary engine and electric motor all in one [driveline] because of the small packaging." The result is an electrified platform that could be made to work as a mild hybrid, series hybrid or a battery electric vehicle with a rotary range extender (if given a plug), depending of the required implementation. It's as if Mazda had a slider to adjust the balance of using a rotary engine and using electric power, to make the platform more of a jack-of-all-trades. Hirose explained: "If you reduce the other way around it could be a pure battery-electric, using really the rotary engine as a range extender and, according to the balance, you can even provide something akin to the series hybrid that is providing the drive force. [...] So, we are looking at a wider coverage and scope. Based on this architecture it allows us to do that, to explore the huge range of applications we can have with the rotary." The platform would also be flexible when it comes to meeting various stringent emissions standards. To be able to sell XEV-based vehicles globally would mean introducing a certain setup for one region and one for another, keeping in mind when the rotary power would kick in and how. While Hirose keeps the question open whether these vehicles would make it for sale in the United States, he says Mazda would be able to make them pass U.S regulations. "I'm just saying that — theoretically — if we were to introduce it in the U.S.