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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 Mazda3 gets only two engines in U.S.; here are details on suspension, AWD

We learned a lot about the 2019 Mazda3 hatchback and sedan when it made its debut at the L.A. Auto Show. It will still have a manual transmission, it will offer all-wheel drive for the first time, and it's a stunner inside and out. But we still had questions about some of the details, so we spoke with folks from Mazda, including a couple of engineers for details on engines, suspension and drivetrains. First off, of the five engines announced for the Mazda3, just two of them are slated for the United States. At launch, the Mazda3 will be offered only with a naturally aspirated 2.5-liter four-cylinder. It's mechanically pretty much the same as what you'll find in the Mazda CX-5 and Mazda6. It even features cylinder deactivation. The only real difference between this engine, its predecessor, and the one in other Mazdas is some minor engine tuning tweaks. Power is almost the same with 186 horsepower and 186 pound-feet of torque, gains of 2 horsepower and 1 pound-foot. Fuel economy is rated at 27 mpg in the city, 36 on the highway, and 30 overall for front-wheel-drive models. We would expect the all-wheel-drive model to have slightly worse fuel economy simply due to extra weight and having to power two extra wheels. The Skyactiv-X engine will become available later in 2019. It will be rolled out in Europe first, with America coming after. When it does come here, it will be offered in states with stricter emissions regulations before coming to other states. While we're on the topic of engines, we also probed a bit about the possibility of the turbocharged 2.5-liter engine coming to the Mazda3. We did get the typical response of not being able to comment on future product. However, they did confirm that the turbocharged engine does in fact fit in the new Mazda3, since it and the naturally aspirated engine are very similar, and the naturally aspirated engine still uses an enormous header, meaning turbo plumbing wouldn't be an issue. Everyone we spoke with at Mazda did emphasize that they are listening closely to buyers, which is what led to the turbo engine being offered on the Mazda6 and CX-5, as well as the introduction of all-wheel-drive to the Mazda3. So, if you, like us, want to see the turbo engine added to the Mazda3, let the company know. They might just do it. Now as for drivetrains, the company is still deciding which trims and which combinations of engines will be offered.

Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.