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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 expects to sell only 4,000 Outlander PHEVs in first year in US

First, it was late 2013 or early 2014. Then it was the fall of 2014. And then it was "roughly" April 2016. Now we can strike "roughly" from the record: the Outlander Plug-In Hybrid will finally arrive in the US in April 2016. Alex Fedorak, public relations manager, Mitsubishi Motors North America, told AutoblogGreen that the company is now "confident in that date." The various delays that held up the SUV this far – including battery shortages, deciding to make the PHEV in the US the refreshed version and better-than-expected sales in Europe and Japan – have worked their way through the system, he said. "The issue was battery capacity, and the vehicle sold far better in Europe than anyone anticipated. It just takes time to build the battery. You got to buy raw materials and rethink the whole process. We're confident that it's going to be next spring." As for where the Outlander will go on sale in the US Fedorak said he did not know the initial markets for, but said it was likely the plug-in SUV would mimic the roll-out of the i-MiEV, which is now available in most states. Even with the Outlander PHEV's success overseas, the company does not expect it to be a big seller here. "It's not going to be big percentage of Outlander sales [in the US]," Fedorak said. "Our expectations are in the single-digit percentage of the total Outlander sales. It's just going to be a technology showcase for us, and we'll see what happens. If it takes off for us like it did in Europe, it'll be good news for the brand." Last year, Mistubishi sold 31,054 Outlander Sports and 13,068 Outlanders in the US. That means Mitsubishi expects to sell a maximum of 3,970 Outlander PHEVs (nine percent of 44,122 total Outlander sales) in the plug-in's first year on sale in the US. Fedorak said he doesn't think there are any specific regulatory issues that need to be solved to bring the Outlander PHEV here. Things like EPA certification and crash testing still need to be done, he said, but that's just part of the normal process now. Fedorak said he thinks there is no difference in the plug-in powertrain from the current version sold in Europe and Japan and the version that will come to the US. But the rest of the 2016 Outlander will be "much more than a facelift," he said (something we've heard before). "It's a total rethink of the chassis and the tuning of the vehicle. The NVH of the vehicle, too."Related Video:

Investigators say Mitsubishi mpg scandal was 'collective failure'

Investigators hired by Mitsubishi Motors to probe why the Japanese automaker engaged in falsifying fuel-economy figures for the past quarter-century faulted the company's "corporate culture." Specifically, there was a lack of unity between divisions, company-wide pressure to boost fuel-efficiency numbers, and an unwillingness to accept fuel-economy shortfalls, Automotive News says, citing comments made by consultants who hired by the company to investigate the problems. Challenging management authority even if it was proper to do so was also frowned upon. One of the investigators called the scandal "a collective failure." Among other suggestions, the consultants recommended that Mitsubishi's vehicle-mileage certification be independent from research and development, that there's greater transparency overall, and that there's a more thorough understanding of laws. New shareholder Nissan may also invest in retooling Mitsubishi's R&D operations, and is sending one of its former executives, Mitsuhiko Yamashita, to Mitsubishi to try to prevent any sort of repeat problems. Mitsubishi joined a list of automakers including Volkswagen, Hyundai/Kia, and Ford that have been found in recent years to either mislead with its published fuel-efficiency figures or emissions-testing procedures. A Nissan spokesman declined to comment on the Mitsubishi report, according to Automotive News. The recommendation comes less than three months after the announcement that Nissan would help rescue Mitsubishi from its fuel-economy scandal by acquiring part of the company. Nissan agreed in May to pay $2.2 billion for a 34-percent stake in Mitsubishi, and said at the time that Mitsubishi would join the Renault-Nissan Alliance. Nissan also owns 15 percent of France-based Renault. That announcement came right after Mitsubishi's admission that it may have falsified fuel-economy data for every one of its vehicles made in Japan dating back to 1991. Related Video: News Source: Automotive NewsImage Credit: Tomohiro Ohsumi/Getty Images Green Mitsubishi Nissan Fuel Efficiency scandal diesel scandal