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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:

2014 Mazda CX-5 with 2.5-liter Skyactiv engine

Back in October, we compared the relative merits of two new and very good small crossovers: the 2013 Ford Escape and 2013 Mazda CX-5. The CX-5 we tested then had Mazda's 2.0-liter Skyactiv-G engine under its hood, and it managed to just edge out the EcoBoosted Ford despite being down by some 23 horsepower and 34 pound-feet of torque. Had it been available, the 2.5-liter Skyactiv engine that we recently had the opportunity to try out in the 2014 Mazda CX-5, it may have made that comparison even easier to call in the Japanese CUV's favor.
Clearly, if you're in the market for a reasonably sized crossover, the CX-5 should, at the very least, be on your test-drive list. The new engine offering will let buyers opt for a stronger powerplant, with 184 hp and 185 lb-ft on tap. On our second day in Austin's Hill Country - the first was spent quick-spinning the 2014 Mazda6 i Sport, you'll recall - we covered a couple of hundred miles and put the new CX-5 through its paces; here's what we turned up.
Driving Notes

Mazda Kai concept hints at a more muscular, refined Mazda3

Mazda is packing some serious punch for the Tokyo Motor Show, unveiling a stylish hatchback it's calling the Kai Concept to go along with the earlier reveal of the show-stopping Vision Coupe. The compact five-door concept heralds a new generation of cars for the Japanese automaker, which is best known for making sporty, smallish and well-designed vehicles — such as the Mazda3, from which this concept derives its design direction. This version smooths over most of the Mazda3's sharp body creases in favor of smooth, undulating body panels that dramatically reflect light and reflect Mazda's KODO design language. It also gets more narrow, aggressive-looking headlights and a unique overhead profile, with two panes of glass that continue from the windshield and are intersected by a solid-color center, like a U-shaped moonroof. The Kai is powered by a next-generation Skyactiv-X combustion engine, which uses Mazda's proprietary compression ignition system to give the gas-powered engine the fuel efficiency, torque and initial acceleration response of a diesel powertrain. Which is encouraging, considering the Mazda3 already delivers impressive fuel economy. Inside, the concept hints at more refinement, with streamlined chrome accents popping from the black dash and interior panels. It all rests on Mazda's Skyactiv Vehicle Architecture that reflects human-centered design philosophy in everything from redesigned seats to maintain the spine's natural "S" curvature, to NVH tweaks to encourage a quieter, more comfortable ride. Mazda has said it plans to put this concept into production, but there's no word yet on when exactly that will be.Related Video: