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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:

Suzuki recalling 184k GM-built models for fire risk

Suzuki is recalling 184,244 total units of the 2004-2008 Forenza (pictured above) and 2005-2008 Reno manufactured under contract by Daewoo, now General Motors Korea, between September 1, 2003, through July 30, 2008, for a risk of fire. The exact split in terms of number of each model isn't available yet.
In the vehicles, the heat generated in the headlight switch or daytime running light module could cause the parts to melt and cause a fire. If this sounds somewhat familiar, it's the same reason that 218,000 units of the 2004-2008 Chevrolet Aveo are being recalled. According to General Motors spokesperson Alan Adler: "It's the same issue."
Adler explained that as the contracted manufacturer, GM is responsible for finding a remedy to this problem and providing it to Suzuki. It's a similar situation as Toyota recalling the Matrix and giving the automaker the repair parts to fix the Pontiac Vibe, which shares the platform.

Spiders Force Suzuki To Recall Midsize Cars

Spiders have forced Suzuki to recall more than 19,000 midsize cars. The automaker says spider webs can clog a fuel vapor vent hose in some 2010 to 2013 Kizashi cars, cutting off air flow. If that happens, it can cause the gas tank to deform, causing cracks, fuel leaks and possible fires. The recall was prompted by seven reports of the problem. Service centers will replace the vent line with one that has a filter on the end. They'll also replace gas tanks if necessary. The problem hasn't caused any accidents or injuries in the U.S., Suzuki said in documents posted Wednesday by the National Highway Traffic Safety Administration. Owners will be notified this month. Those with questions can call Suzuki customer service at (800) 934-0934. American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection in November of 2012 and stopped selling automobiles in the U.S. The recall is the second caused by spiders this year. In April Mazda recalled 42,000 Mazda6 midsize cars in the U.S. with 2.5-liter engines for a similar problem. The recalled cars were from the 2010 through 2012 model years. Recalls Suzuki Safety spider