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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 revamping dealers with 'Retail Evolution'

Mazda introduced its Retail Revolution dealership design language 12 years ago, which focused on open-plan spaces, multimedia areas, and allowing customers to interact with the brand before needing to interact with a salesperson. Two years ago the carmaker started work on the next step in its dealership design, and the new language, called Retail Evolution, was unveiled at Mazda of Everett in Seattle, Washington. Aiming to make the Mazda brand feel more premium and increase dealer profits, it goes even further on the open-plan to create "a new level of business transparency." It's all done with a lot of black, white, raw wood, metal finishes, and a lot of glass. Mazda Lounges will offer free wi-fi, and digital displays will replace static photographs. So as not to hurt showrooms still recouping their investment in Retail Revolution, Mazda will work with dealers to figure out how best to update facilities, and the Retail Evolution has three tiers that can be adapted to particular locations. The press release is below, a couple of renderings are above. MAZDA ANNOUNCES ALL-NEW RETAIL EVOLUTION DEALERSHIP DESIGN Mazda of Everett Showcases First Ground-Up Retail Evolution Design IRVINE, Calif. (August 27, 2015) – Mazda North American Operations (MNAO) today announced its all-new dealership design, dubbed "Retail Evolution", featuring an open concept floorplan that offers a new level of business transparency, and a look and feel enhanced through the use of natural materials that results in an even more upscale decor than the company's current popular Retail Revolution design. The first Retail Evolution dealership built from the ground up to this exacting standard will be Mazda of Everett in Seattle, Wash., opening today. "Thanks to our KODO design philosophy and suite of SKYACTIV technologies, our vehicle lineup has never been stronger. We are now able to take that groundbreaking design language and translate it into our dealership experience," said Jim O'Sullivan, president & CEO, MNAO. "Retail Evolution embodies the spirit and direction of the Mazda brand, while offering an upscale experience our customers expect and deserve." Clad in premium black, clean white, and featuring new chrome Mazda signage, the new Retail Evolution Mazda dealerships will provide dealers with strong curb appeal. New materials throughout the building give dealers an upscale look and feel with warm raw-material tones of wood and metal in the showroom.

Mazda keeping non-hybrid, non-electric Skyactiv strategy

Mazda still thinks that it can buck the trend of adding those fancy batteries and electric motors to its cars. At least for a little while longer. Hopefully. Speaking to Auto Express recently, Mazda's European boss, Jeff Guyton, said that he expects his company's cars to be able to get a lot more efficient without resorting to any of that fancy electrification stuff. "I think there's at least 20-30 percent better fuel economy by the end of the decade," he said. He said that he expected to get to Europe's low target of 95 grams of CO2 per kilometer, "without any significant deployment of electrical drive." This part is all in line with Mazda's long-term Skyactiv strategy, as laid out back in 2011 and first mentioned publicly in 2010. Remember, this is the company that once proudly proclaimed, "Not Electric. Not Hybrid. Not A Drag To Drive." As explained back in 2011, Mazda hopes to wait until other automakers have done all of the heavy lifting on developing plug-in and hybrid tech so that when Mazda enters the market, things will be cheaper. Of course, Mazda has been quietly testing all-electric vehicles and Guyton said that there may be an Mazda EV at some point. "We are interested in electric technology and it will be in the distant future when it will be quite important," he told AE. "But we think it will take some time to be commercially attractive without tax payer-funded incentives." How much of a delay? Well, there is a gas-electric Mazda 3 hybrid available in Japan that uses some powertrain parts from the Toyota Prius, and we all know that the Prius has been around for ages. Maybe in 2025, Mazda will come out with a Leaf-based Mazda 2. Related Video: Green Mazda Fuel Efficiency Electric Hybrid skyactiv mazda skyactiv