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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:

American Suzuki gets $100M in financing to go out of business... buy more cars?

American Suzuki Motor Corporation (ASMC), which declared bankruptcy in early November, has been approved by the courts for up to $100 million in debtor-in-possession financing to enable it to shutter its US car business. ASMC had received a $45 million loan from the Japanese parent company, Suzuki Motor Corporation (SMC), last month in order to make repayment deals with its franchise dealers. At the same time, ASMC was awaiting final court approval of this larger loan.
Out of the newly approved funds, $50 million can be used for operations, and oddly, the other $50 million can be put toward purchases of new inventory from SMC. That's right, even as existing inventory was headed for a smooth exit with the help of incentives, customer demand for orphan Suzuki models is so strong - last month's sales were up 22 percent compared to 2011 - that ASMC plans to purchase 2,500 additional cars from SMC that were built after the bankruptcy announcement. Good news for the owners of those vehicles: the top 50 dealers, representing more than 98 percent of ASMC sales, will become parts and services centers.
The press release below has more information. Unlike its recent tenure here, the end of Suzuki cars in the US looks like it's going rather well.

Funning around with ZF's Smart, Advanced Urban Vehicles

ZF has a lot of experience building various electric vehicle parts, including transmissions, but it doesn't put them all together into one cute little package that often. The ZF Advanced Urban Vehicle changes that, and shows what the company can do when it takes bits and pieces of its admittedly cool tech and throws them all into the shell of an old Suzuki Swift. We got to control the all-electric beast at an event in Germany this summer, using nothing but a connected iPad. There were three headline technologies on the AUV (also called the Smart Urban Vehicle): the remote control Smart Parking Assist function, the all-electric rear-axle drive electric Twist Beam (eTB), and the PreVision Cloud Assist. PreVision Cloud Assist ZF had a short track set up for us to try out the PreVision Cloud Assist. The first time around the track, nothing was different. It's not supposed to be. The trick with Cloud Assist is that the car saves real-world driver interactions into its memory and, with the addition of GPS coordinates, starts to learn how to drive the route. Go to work the same way every day? If you're being assisted by a cloud, then all you have to do is steer. The car learns how fast it can take a turn and when it needs to slow down, with the idea here is to let the car move when it can, increasing the efficiency and range of an EV. You're still in charge in case of traffic ahead, but in open road circumstances, you won't need to touch the brakes or the gas. Just the steering wheel. On my second time around the demo track (which had data from other drivers who had tested the car earlier in the day), I kept my feet off the pedals, and the darn thing worked. It slowed me down when necessary to make a curve, but kept me at a brisk pace that felt a bit too fast but was in fact totally appropriate. Electric Twist Beam There's another bit of cool tech hidden near the front wheels. The car uses a MacPherson strut that was modified to offer a wider steering angle, up to 75 degrees, to be exact. ZF calls this the electric Twist Beam (eTB), and it gives the car an incredibly tight turning radius, about 6.5 meters. An axle like this could go into an EV or an ICE vehicle, but it makes a lot of sense in an electric car since it does have a major problem: it can't be powered. No worries, thought ZF engineers, who made the little SUV rear-wheel-drive by adding two electric motors.