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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:

China's FAW now building all three Mazda6 generations

The Chinese auto market is one of the most interesting in the world to look at. Its automakers appear to still be figuring things out and remain open to experimentation. For example, at this moment, you can buy new copies of all three generations of the Mazda6 from showrooms there.
Mazda joint-venture partner FAW recently introduced the latest generation to China as the Mazda6 Atenza, according to Just Auto. Yet buyers still have the option of getting the previous generation as well, which is sold as the Mazda6 Ruiyi. Obviously, that isn't too remarkable - companies in the US have briefly sold two generations of the same nameplate simultaneously for brief points in the past, and the practice is much more common in developing markets. However, Chinese consumers still have the third choice, too - the first-generation model that dates back to the early 2000s, is still on offer, known simply as Mazda6.
While it would be hard to imagine selling three generations of the same models at once in the US, the idea is an interesting one. We enjoyed our long-term test of the latest generation, and the previous models weren't bad cars either, so provided there's a healthy difference in pricing and marketplace confusion is limited by differing names, we can see it working. If nothing else, it's a fascinating illustration of how broad China's developing auto market really is.

2019 Mazda CX-5 Turbo Drivers' Notes Review | More power, more love

The second-gen Mazda CX-5 has been on sale since 2017, but the big news for this year is the addition of a new turbocharged 2.5-liter inline-four. The engine — dubbed Skyactiv-G — is shared with the Mazda6 and the Mazda CX-9 three-row crossover and makes 227 horsepower and 310 pound-feet of torque on regular gas and up to 250 hp when running premium fuel. Fuel economy for the new engine is rated at 22 mpg city, 27 mpg highway and 24 mpg combined. The engine is only available with all-wheel drive, but the extra grunt means fuel economy is down from the naturally-aspirated 2.5-liter inline-four (24 city, 30 highway and 26 combined). The new engine is wrapped in the same familiar package we've seen for the past couple of years, but is exclusive to the range-topping Grand Touring Reserve and Signature trim levels. This particular test car was a Signature, which starts at $37,935 before options. For reference, a base, front-wheel drive CX-5 Sport starts at $25,395. Standard features on the CX-5 Signature include 19-inch wheels, LED lighting, rain-sensing wipers, leather seating, heated front and rear seats, a heated steering wheel, adaptive cruise control, proximity entry and push-button start, and a Bose audio system. Options on this Soul Red ($595) model are restricted to accessory items: $70 for a cargo mat, $125 for all-weather floor mats, $400 for illuminated door sills, $125 for a rear-bumper guard and $250 for a retractable cargo cover. The final MSRP comes in just below $40,000. Our contributor Ben Hsu had high praise for the CX-5 turbo in our recent first-drive review. Now the rest of us have had a crack at it. Editor-in-Chief Greg Migliore: I love the CX-5's looks and driving dynamics. It's a sporty Mazda tailored to the crossover segment. This one, done up in Soul Red Crystal Metallic (what a name) and Signature trim with smokey 19-inch wheels, looks great. The Skyactiv-G four-cylinder with 227 hp (on 87 octane) and 310 pound-feet of torque makes for a brisk driving experience. In Sport mode, it's almost more eager than I want it to be. The main downside is the interior. The materials are just fine, and the infotainment is a little clunky to use. It takes a few more moves than I'd like to change the radio station. Also, major demerits for not being able to put a rear-facing car seat in the middle. Considering young families are a target market for this, that is not ideal.