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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:

Mitsubishi launches, prices 2018 Outlander PHEV for U.S.

We've been waiting on this one a long time. Mitsubishi has been selling the plug-in hybrid version of its Outlander crossover for a while now, just not here in the U.S. It has seen popularity overseas, though, and is Europe's best-selling plug-in hybrid. It surpassed the 100,000 sales mark back in early 2016, thanks to Europe and Japan. Now, Mitsubishi is looking to electrify our shores, and will bring the all-new Outlander PHEV to the U.S. by the end of the year. The Outlander PHEV is powered by a 2.0-liter engine and two 60-kW electric motors, one situated at each axle, for a total estimated output of 195 horsepower. That makes it all-wheel-drive as well, using Mitsubishi's Super All-Wheel Control (S-AWC) system borrowed from the Lancer Evolution, and it has already proven itself in off-road competition. A 300-volt, 12-kWh lithium-ion battery pack is located in the subfloor between the front and rear axles. It can be charged via plug (including DC fast-charging capability), or via the car's regenerative braking system (adjustable using paddle shifters). The vehicle features three different, automatically selected drive modes. EV Drive Mode makes use of the electric motors for all-electric driving. Parallel Hybrid Mode uses the gas engine to drive the front wheels, and provides added power from the electric motors as necessary (mainly at high speeds, where this mode is the most efficient). Series Hybrid Mode uses the gasoline engine as a generator to charge the battery and provide power to the electric motors, which are doing the propulsion work. There are also three driver-selected modes. Eco Mode reduces fuel and electricity consumption. Battery Save Mode conserves charge, operating in hybrid mode. Battery Charge Mode keeps the engine running to generate electricity and recharge the battery pack to make sure you'll have power for driving uphill or towing, for instance. EV driving range and fuel economy figures will be released soon, but Mitsubishi says it expects to exceed the premium competition (which offer about 14 miles of EV range). The Outlander PHEV is also big on technology. It offers a suite of safety systems, including blind spot and lane departure warnings, multi-view camera, adaptive cruise control, auto high beams, and forward collision mitigation. The vehicle offers a smartphone app that allows the owner to remotely control the charging schedule, climate control, lighting, vehicle settings, and monitor vehicle status.

EPA, CARB want Mitsubishi to retest US fuel economy figures

The Environmental Protection Agency and California Air Resources Board are the latest government bodies to request details from Mitsubishi in connection with the company's fuel economy cheating, Automotive News reports. The company will also have to reevaluate the mileage for some models here. "The agency will be directing the company to conduct additional coast down testing for vehicles sold in the US," an EPA spokesperson told Reuters. The EPA, 'will be directing the company to conduct additional coast down testing for vehicles sold in the US.' The EPA's coast down test requires vehicles to roll from 80 miles per hour to a stop. Automakers' engineers collect data on the model's drag, rolling resistance, and drivetrain friction. The information then goes into a dynamometer for the mandated fuel economy test. The EPA set stricter guidelines for the test in 2015 starting with 2017 model year vehicles, which might help avoid similar scandals here in the future. Japan has also used a coast down test since 1991, but Mitsubishi recently admitted that it hadn't been following the evaluation's mandated protocols there. Instead, the automaker came up with its own "high-speed coasting test." By selecting favorable values from the results, the company was able to artificially inflate the fuel economy of at least four Japanese minicars. In addition to inquiries from CARB and the EPA, the National Highway Traffic Safety Administration has also requested similar details from Mitsubishi. However, there is no evidence yet of any fuel economy irregularities for vehicles in the US. These agencies are just checking things out in reaction to the massive scandal in Japan. Mitsubishi execs are trying to weather the storm, though. Chief Operating Officer Tetsuro Aikawa and CEO Osamu Masuko have denied rumors about resigning over the scandal, according to Automotive News Europe citing a Reuters report. "It's my responsibility and my mission to put the company on track to recovery," Aikawa said. Their decision came despite the automaker's stock losing half of its value since the fiasco started, and vehicle orders in Japan have dropped significantly, too. Related Video: News Source: Automotive News - sub. req., Reuters, Automotive News Europe - sub. req.Image Credit: Toru Hanai TPX / Reuters Government/Legal Green Mitsubishi Fuel Efficiency mpg vw diesel scandal