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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:

Mazda recalls 374,500 vehicles because of Takata inflators

The Basics: Mazda will recall 374,519 examples of the 2003-2008 Mazda6 manufactured from May 29, 2002, to May 5, 2008; the 2006-2007 Mazdaspeed6 built from July 1, 2005, to June 29, 2007; and the 2004 RX-8 made from June 25, 2003, to June 30, 2003. The Problem: These vehicles contain front passenger airbag inflators from Takata that could rupture in a crash. If this happens, it could spray metal shrapnel at an occupant, which could seriously injure or even kill the person. Injuries/Deaths: The report from the National Highway Traffic Safety Administration didn't mention injuries or deaths, but Autoblog reached out to Mazda for confirmation. Takata's rupturing inflators allegedly have links to nine deaths globally and around 100 injuries. The Fix: Mazda dealers will replace the passenger side airbag with a new one. If You Own One: Mazda has not said when the replacements for these vehicles will begin. Experts believe that prolonged exposure to high humidity can cause the inflators' ammonium nitrate propellant to ignite too quickly in an accident. More Information: This recall is a nationwide expansion of Mazda's passenger's side airbag recall, which was previously limited to high-humidity regions. The population now includes 310,592 additional examples of the Mazda6, Mazda spokesperson Tamara Mlynarczyk tells Autoblog. The company discovered this new issue after Takata tested an inflator taken from a Mazda6, and it ruptured, according to NHTSA documents (PDF). The company already had a national safety campaign to fix the driver's side airbags in these vehicles. Related Video: RECALL Subject : Passenger Air Bag Inflator May Rupture Report Receipt Date: DEC 23, 2015 NHTSA Campaign Number: 15V869000 Component(s): AIR BAGS Potential Number of Units Affected: 374,519 All Products Associated with this Recall Vehicle Make Model Model Year(s) MAZDA MAZDA6 2003-2008 MAZDA MAZDASPEED6 2006-2007 MAZDA RX-8 2004 Details close Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2003-2008 Mazda6 vehicles manufactured May 29, 2002, to May 5, 2008, 2006-2007 Mazdaspeed6 vehicles manufactured July 1, 2005, to June 29, 2007, and a limited production of model year 2004 RX-8 vehicles manufactured June 25, 2003, to June 30, 2003. The inflators in the front passenger air bags are susceptible to rupture in the event of a crash necessitating the deployment of the front passenger air bag.

Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump