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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:

6 best cars for $5,000

Looking for a great used car but only have a few thousand bucks to spend? Check out our 6 favorite used vehicles that you can get for around $5,000 or less. 1. 2004-2006 Subaru WRX The Subaru Impreza WRX offers a lot of what you might want in a vehicle. A 2L turbocharged engine gives 227 horsepower and it gets 27 mpg on the highway. 2. 2006-2015 Mazda5 The Mazda5 never got the sales it deserved. It was affordable and more maneuverable than most vehicles, but it never took off. It was based on the Mazda3, and felt like it as well... just a bigger version. If you're lucky, you'll be able to locate one with a manual transmission. 3. 1990-1997 Mazda MX-5 Miata A car that's praised for rewarding the driver. The shifter is sublime, and the controls are light and accurate. The 1.6-liter engine that makes 115 horsepower or a 1.8-liter that makes 128 horsepower are our preferred versions. 4. 2009-2013 Honda Fit Beside being cute, it's supremely practical and great in the city. It manages to be pretty entertaining to drive, and let's not forget it's a hatchback. 5. 1987-2006 Jeep Wrangler Yes, it's possible to get a well-loved Jeep Wrangler with about 100,000 miles on the odometer. In many ways, a Wrangler is perfect for the snowy winters with its unrivaled 4x4 capability. An SUV, convertible and icon, all in one? What more could you ask for? 6. 2002 Chevy Silverado Truck lovers, we have you covered. We love the Chevy Silverado with a 5.3-liter V8 engine and a 4-speed automatic transmission. It makes a great second car, especially if you already have a fuel efficient vehicle around the house. What would you buy for $5,000? Honda Jeep Mazda Subaru Autoblog Minute Videos Original Video wrangler mazda5

Confirmed: Mazda Miata gets more power, higher redline, telescoping wheel

Our friend over at Road & Track, Bozi Tatarevic, has a keen nose for stuff just like today's Miata news, and he spotted an article by the Japanese car magazine Car Watch that details Mazda's upcoming updates. Car Watch actually got to drive the car, too. There's a lot to go through, but the highlight has to be confirmation of what we told you earlier this year about a significant power bump: The Miata will indeed get an increase of 26 horsepower, from 155 to 181. But the power's not the whole story. Mazda has increased the redline from 6,800 RPM to 7,500. It's not clear at this point where torque and power peaks are in the rev range, or how these changes affect low-speed drivability, but more revs are almost always a good thing and aren't likely to detract from the roadster's fundamental goodness. Car Watch reports that lighter pistons and connecting rods are fitted to help reduce rotational mass in the 2.0-liter inline-four. Some valvetrain changes were needed to support the higher redline, mainly stiffer valvesprings to prevent valve float. Mazda also changed the shape of the valves and optimized the intake ports to breathe better at higher RPM. The inner diameter of the exhaust ports were increased to flow better through a new muffler better tuned to the engine's new operating range. This confirms and gives a little more detail to what we reported earlier based on a leaked document from Mazda Canada. Car Watch also confirms that the revised Miata will get a low-inertia dual-mass flywheel, which should help absorb some vibration, noise and harshness from the higher-revving engine without losing too much of the directness that a single-mass flywheel provides. Mazda usually gets stuff like this right, so while we won't know until we get a chance to drive it whether the DMF feels "right," we're not too worried about it. There's also a telescopic steering wheel, a first in any Miata, which has a range of about 1.1 inches. That doesn't sound like much, but it should help folks with longer legs reach the wheel without having to crank the seat forward. Interestingly, Car Watch reports that the telescoping wheel was opposed by some in the company seeking to save every fraction of an ounce of weight, and to get it through, the company apparently had to change some of the material in the upper steering column from steel to aluminum to satisfy the weight-conscious. Little details like these are fantastic.