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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:

Autoblog Minute: Highlights from the 2015 Tokyo Motor Show

The 44th Tokyo Motor Show is here with plenty of exciting new car reveals, like the stunning Mazda RX-Vision concept and the wild Nissan Concept 2020 Vision Gran Turismo. Autoblog's Chris McGraw reports on this edition of Autoblog Minute, with commentary from Autoblog's Managing editor, Steven Ewing. Show full video transcript text [00:00:00] The 44th Tokyo Motor Show is here with plenty of exciting new car reveals and lots of tech-heavy concept vehicles. I'm Chris McGraw and this is your Autoblog Minute. The Tokyo Motor Show opens to the public but for those unable to make it to Japan Autoblog is on hand to report. For more we go on location to Tokyo and Autoblog's Managing editor, Steven Ewing. [00:00:30] - [00:01:00] [Steven Ewing Interview] And that's your recap of the 44th Tokyo Motor Show, for our detailed coverage of the event be sure to head to Autoblo.com/tokyo-motor-show. For Autoblog, I'm Chris McGraw. [00:01:30] [Outro] Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Green Tokyo Motor Show Mazda Subaru Suzuki Coupe Concept Cars Autoblog Minute Videos Original Video Tokyo 2015

Suzuki teases production C-segment crossover, could it have saved them in US?

Suzuki may be retreating (amidst booming sales) from the US market, but its efforts to woo European buyers are still going strong. Witness as proof these shadowy teaser images of the automaker's new C-segment crossover that it plans to unveil at the Geneva Motor Show next month.
Until the official debut, we've got just a few tidbits of information to report about the upcoming Suzuki. We're told, and can see, that the car has been modeled on the S-Cross concept car from the 2012 Paris Motor Show. Quite a bit of translation has happened, however, from show car to production form, as we see that the sweeping greenhouse of the S-Cross has been ditched in favor of a traditional pillared setup, large LEDs have moved from the lower front fascia to under the headlamps, and the grille is now much more in line with the rest of Suzuki's current range. The crossover is still painted in a faintly froggish shade of green, though, so the weirdness hasn't been completely leeched out.
We're also informed that the new C-segment offering will have an available a four-wheel-drive powertrain and one of the largest luggage areas in the segment. All of which strikes us as good stuff, but we're still not convinced that this unnamed entrant could have turned the Japanese automaker's fortunes in North America - even if it would have competed in one of the industry's fastest-growing segments. Feel free to read over Suzuki's brief press release below and look at the images before speculating for yourself in Comments.